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Stellantis should deliver on investment commitments, White House says
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Stellantis should deliver on investment commitments, White House says
Oct 17, 2024 1:48 PM

WASHINGTON, Oct 16 (Reuters) -

Chrysler-parent Stellantis ( STLA ) should made good on

its commitments made to the United Auto Workers union in 2023 to

communities affected by plant closures in the United States,

the White House said Wednesday.

The deal reached between the UAW and Stellantis ( STLA ) "included a

commitment to reopen and expand production in communities that

were devastated by previous plant closures," White House

spokeswoman Karine Jean-Pierre said. "What we want to see is

Stellantis ( STLA ) certainly deliver on those commitments to the UAW and

to the communities."

Stellantis ( STLA ) agreed in 2023 within the UAW contract to invest

$1.5 billion to reopen its shuttered Belvidere, Illinois,

assembly plant and build new mid-size trucks by 2027 as part of

$19 billion in overall investment plans. Stellantis ( STLA ) acknowledged

in August delaying some investments because of economic

conditions but said it "firmly stands by its commitment."

President Joe Biden

traveled to Illinois in November 2023 to tout the agreement.

Stellantis ( STLA ) did not immediately comment.

Stellantis ( STLA )

in recent weeks has filed numerous lawsuits

against the UAW and local units, saying the union has

violated its contract by threatening to strike over the

company's delays in planned investments.

Separately, Jean-Pierre did not respond directly to a

question about a

report that Stellantis ( STLA ) plans

to move some Ram pickup production to Mexico. Stellantis ( STLA ) is

currently making other variants of the Ram pickup trucks in

Mexico.

The UAW said last year that Stellantis ( STLA ) was threatening move

production of the Ram 1500 pickup truck from the Detroit area to

Mexico.

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