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Stellantis says Illinois investment plans delayed
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Stellantis says Illinois investment plans delayed
Aug 20, 2024 6:37 AM

Aug 20 (Reuters) - Stellantis ( STLA ) said on Tuesday

its planned investments at Belvidere, Illinois, will be delayed

but it is committed to moving forward and is not in violation

of its union contract.

On Monday, the United Auto Workers union said some of its

local units representing tens of thousands of workers at

Stellantis ( STLA ) were preparing to file grievances and could launch a

nationwide strike, accusing the automaker of not honoring

production commitments.

Chrysler-parent Stellantis ( STLA ) said on Tuesday it had told the

UAW of the delay "but firmly stands by its commitment" saying

the new timetable is needed "to ensure the company's future

competitiveness and sustainability, which are necessary to

preserve U.S. manufacturing jobs."

The UAW did not immediately comment.

Stellantis ( STLA ) agreed to build a new $3.2 billion battery plant

and invest $1.5 billion in a new mid-size truck factory in

Belvidere and add 5,000 total U.S. jobs by 2028 as part of a new

contract deal, the UAW said in November.

UAW President Shawn Fain referred to the issue during

remarks at the Democratic National Convention on Monday night.

"Let me be clear: Stellantis ( STLA ) must keep the promises they

made to America and our union contract. And the UAW will take

whatever action necessary at Stellantis ( STLA ) or any other corporation

to stand up and hold corporate America accountable," he said.

"(Stellantis ( STLA )) has not violated the commitments made in the

investment letter included in the 2023 UAW collective bargaining

agreement and strongly objects to the union's accusations," the

company said Tuesday.

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