Explore the Possibilities: Uncovering Stellantis’ 18 Facility Closures Under UAW Agreement

Stellantis, a new firm formed last month after a controversial merger between Fiat Chrysler Automobiles and Peugeot SA, has made a new offer to the United Auto Workers union in an effort to negotiate a labor agreement between the two companies. The latest offer from Stellantis is far-reaching, and includes a plan to close 18 of its facilities in the United States in order to improve its bottom line. The agreement – which is the latest in the ongoing discussions between Stellantis and the United Auto Workers – is Stellantis’ attempt to reset market conditions so the two parties are on a level playing field. According to the offer, Stellantis would discontinue operations at 18 facilities in the U.S. This would significantly reduce Stellantis’ overall labor costs, while the UAW would be granted wage increases and benefits for its members. This new offer from Stellantis comes on the heels of a formative period of rough negotiation between the two parties. The biggest issue has been wage disparity, with Stellantis offering workers lower wages than those of Fiat Chrysler. Under the new agreement, these wages and the benefits package will now be drastically improved. The 18 facilities that Stellantis seeks to shut down would include the Kokomo, Indiana, Assembly Plant, as well as a casting plant in Detroit and a powertrain plant in Dundee, Michigan. Some of these locations are expected to be refurbished into green energy production facilities, and Stellantis has expressed a desire to increase its manufacturing operations in the U.S. While the UAW is still studying the details of the new offer, Stellantis has placed an expiration date of June 30th on the terms of the agreement. This means that the union must come to an agreement with its new employer by the end of the month, or risk facing the potential closure of additional facilities.