Stellantis says it honored commitments without otherwise contradicting UAW

The UAW recently filed grievances regarding Stellantis’ warning that the upcoming midsized pickup targeted for Belvidere would be delayed beyond the contract term, and rumors that the upcoming Durango would move from Jefferson Avenue to Windsor, Ontario. Today Stellantis released a statement that it had honored its commitments for product, without actually disputing the product changes.

The reply from Stellantis follows; bold type comes from Stellantis. The company is currently also engaged in a public debate over its methods with the leadership of the U.S. dealer council and lawsuits with at least two of its suppliers.

After this careful review and analysis, Stellantis stands by its position that it has honored its commitments under the 2023 collective bargaining agreement. …

• The language in Letter 311 is clear. It states that the investments and allocations set forth in Letter 311 ‘are subject to approval by the Stellantis product Allocation Committee and contingent upon plant performance, changes in market conditions, and customer demand continuing to generate sustainable and profitable volumes’ for the relevant facility. The investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but contingent upon numerous factors, including market conditions.
• There is indisputable volatility in the market, especially as the industry transitions to an electrified future. Many automakers are revising their plans. Over the last year, there have been numerous announcements of investment and product delays as well as outright product cancelations across the industry, leading one respected automotive consulting company to revise its ‘24 EV sales projections down 25% (note: 9% from 12%). The evidence of a dramatic transformation of the industry and its effects on the market is clear.
• The decision to delay the timeline for the Belvidere plant allocations is consistent with the current challenging automotive landscape and the plain language of Letter 311.
• Contrary to Fain’s narrative, the Company has not made an announcement regarding the production allocation of the next generation Dodge Durango.
• Stellantis has announced investments of $6.2 billion in Kokomo, in 2022 and 2023, respectively. With those investments plus the recently announced +$400 million in Michigan, we have actually announced about 30% of the nearly $19 billion that is included in the 2023 agreement, not just 2% as Fain claims.

Regarding “Contrary to Fain’s narrative, the Company has not made an announcement regarding the production allocation of the next generation Dodge Durango,” it is important to note that Fain never claimed the company had made a formal announcement. However, rumors of this move have spread, partly due to an advisory by a respected analyst, and Stellantis has not repudiated them. It took Stellantis little time to repudiate rumors of selling Chrysler on that company’s anniversary.

It seems likely that the question of whether product commitments can be withdrawn or changed based on “the current challenging automotive landscape” will end up in front of the National Labor Relations Board or a judge, and the applicability of Letter 311 will be part of that judgment.