Stellantis Defends UAW Attacks, But Won’t Reveal Durango Plans

Stellantis on Monday rejected UAW President Shawn Fain’s claim that the automaker is not fulfilling its obligations under a contract reached with the union last year.

The company has not revealed whether production of the Dodge Durango will remain in Detroit or, as the union says, will be moved to Windsor, Ontario.

The company said in a press release Monday that North America COO Carlos Zarlenga sent Fain an email that “established the facts” regarding accusations made by Fain on a Facebook Live address last week, where Fain outlined the process for voting to strike over product commitments. The company said it conducted a “detailed and thorough review” and that it disagreed with Fain’s comments about whether the company is honoring its commitments.

The company declined to share the email with the Free Press, which also reached out to the UAW for comment.

The Stellantis statement cited “undeniable market volatility” and said CEO Carlos Tavares and his North American team remain willing “to meet and discuss these matters in the best interest of Stellantis employees and to help the UAW understand how these actions are appropriate” in light of the agreement.

Fain, tellingly, said the union had been asking for a meeting with Tavares for weeks. The union had threatened a nationwide strike over product commitments, which the company said was not allowed in this case. The union had also filed complaints with the company and charges with the National Labor Relations Board.

The announcement is the latest in a war of messages between the automaker, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, and the UAW labor union, as Stellantis struggles with U.S. sales, declining profits and criticism from the union and even its dealers.

On Monday, Chief Financial Officer Natalie Knight, speaking at a Bank of America virtual conference, said the company will cut production in the third quarter and that it aims to reduce its inventory by 100,000 vehicles by early 2025 as it tries to rebound from a difficult 2024.

In its press release, Stellantis highlighted its investment announcements and the challenges of the current market. Stellantis emphasized that “investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but are dependent on many factors, including market conditions.”

The company, which plans to launch multiple electric vehicles this year, including the Ram 1500 REV pickup and Dodge Charger Daytona, pointed to slower growth in electric vehicle sales as one of the issues affecting the entire industry, noting that “the evidence of a drastic industry transformation and its impact on the market is clear.”

But Fain pointed to improved sales at Ford and General Motors in recent periods to confirm that Stellantis’ problems were not due to market conditions, and he blamed Tavares.

In terms of product and investment, Fain said Stellantis has only managed to fulfill about 2% of its commitments under the agreement nationwide so far, but in its release, Stellantis said that when counting the $6.2 billion in investments announced in Kokomo, Indiana, in 2022 and 2023, the automaker has announced “about 30% of the nearly $19 billion included in the 2023 agreement, not just 2% as Fain claims.”

Earlier this month, the union held a rally after the automaker announced $406 million in investments in Warren Truck, Sterling Heights Assembly and Dundee Engine, emphasizing that the company still plans to lay off one person this year.

The fate of the idled Belvidere assembly plant in Illinois is another sticking point with the union. Plans to restart the plant — seen as a major victory for the union in negotiations — to produce a midsize pickup truck are on hold. A company statement said the “decision to delay the Belvidere plant allocation schedule is consistent with the current challenging automotive landscape and the plain language of the 311 Letter” in the agreement.

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As for the Dodge Durango, Fain slammed the company for its future production location. Fain said the company has confirmed a planned move from the Detroit Assembly Complex-Jefferson to the Windsor Assembly Plant in Ontario. The company denied making such a confirmation, saying in a statement Monday that it “has not announced a production allocation for the next generation Dodge Durango.”

The Free Press asked if production would remain in Detroit or move to Windsor. Spokeswoman Jodi Tinson said, “We have nothing further to say about the Durango.”

Fain said moving Durango to Windsor would destroy “thousands of American jobs” and called it “a flagrant violation of our agreement.”

Contact Eric D. Lawrence at [email protected]. Become a subscriber. Submit a letter to the editor at freep.com/letters.