Stellantis, the European-based automaker that includes the former Chrysler Corp., on Monday denied accusations made recently by the United Auto Workers union.
The Detroit-based union said earlier this month it may go on strike against Stellantis, alleging the automaker is not fulfilling terms of a 2023 labor accord.
On Monday, Stellantis fired back in a statement.
The company said it sent an email to UAW President Shawn Fain. “In particular, the email took exception to the suggestion that Stellantis has not honored its commitments during negotiations,” the automaker said.
The two sides are clashing about a delay in the reopening of a factory in Belvidere, Illinois, and where the next generation of the Dodge Durango will be built. The UAW has said Stellantis wants to shift Durango production from Michigan to Canada.
Stellantis said on Monday that plant investments and product allocation “are subject to approval by the Stellantis product Allocation Committee and contingent upon sustainable and profitable volumes.”
The automaker said “investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but contingent upon numerous factors, including market conditions.”
“Stellantis wants everyone to believe they simply can’t keep their commitments to American autoworkers,” UAW President Shawn Fain said on a Sept. 17 livestream. “Stellantis is one of the most profitable automakers in the world…Stellantis is rolling in the dough.”
A phone message and an email left with UAW representatives was not immediately answered, concerning the Stellantis statement.
In the Monday statement, Stellantis said there is “indisputable volatility in the market.” The automaker cited how other companies have adjusted their plans to increase electric vehicle production.
In 2023 labor negotiations with the UAW, Stellantis agreed to reopen the Illinois plant to produce a midsize trucks and also make electric vehicle batteries at the site, the UAW said last year.
“The decision to delay the timeline for the Belvidere plant associations is consistent” with the contract accord, Stellantis said on Monday. “Contrary to Fain’s narrative, the company has not made an announcement regarding the production allocation of the next generation Dodge Durango.”
On Sept. 11, Stellantis announced it was investing $406 million at three Michigan plants to build EVs and battery parts. Stellantis said Monday it has announced “about 30% of the nearly $19 billion that is included in the 2023 agreement, not just 2% as Fain claims.”
Under Fain, the UAW has been aggressive in its dealing with Detroit automakers Stellantis, General Motors Co., and Ford Motor Co.
During the 2023 labor negotiations, the union went on strike at some Detroit automaker plants at the same time. The UAW targeted the most profitable plants at the companies.
New contracts at the automakers were ratified in November. The accords called for a 25% boost in wages and the return of cost-of-living adjustments as well as job commitments for future electric vehicle projects, among other gains for union members.
The UAW also is working to organize non-union automakers in the U.S. It is now negotiating a contract at Volkswagen AG’s Chattanooga, Tennessee factory. However, the union failed in its attempt to unionize a Mercedes-Benz plant in Vance, Alabama. U.S. operations of Toyota Motor Corp., Honda Motor Co., and Nissan Motor Co. remain non-union.
