Aug 19 (Reuters) - The United Auto Workers union said on

Monday some local units representing workers at Stellantis ( STLA )

are preparing to file grievances and could launch a

nationwide strike, accusing the automaker of not honoring

production commitments.

The UAW said the locals represent tens of thousands of

workers and the dispute is over agreements the union said

Stellantis ( STLA ) made in 2023 as part of a new labor agreement.

Chrysler-parent 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, Illinois and add 5,000 total U.S.

jobs by 2028 as part of a new contract deal, the UAW said in

November 2023.

Stellantis ( STLA ) did not immediately respond to requests for

comment. The UAW said the automaker would not launch the

Illinois investments on the previously agreed timetable, without

specifying the dates.

Last month, the U.S. Energy Department said it planned to

award Stellantis ( STLA ) $334.8 million to convert the shuttered

Belvidere Assembly plant to build EVs and $250 million to

convert its Indiana Transmission Plant in Kokomo to produce EV

components.

The UAW said since 2023 "the company has gone back on its

product commitments at Belvidere, and has been unreceptive in

talks with the union to stay on track." The UAW added "this

glaring violation of the contract imperils all of the other

investment commitments the company has made."

UAW President Shawn Fain referred to the issue during a

prime-time address 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.

Earlier this month, Stellantis ( STLA ) said it was laying off as

many as 2,450 factory workers from its Warren Truck assembly

plant outside of Detroit as the automaker ends production of the

Ram 1500 Classic truck.

Stellantis ( STLA ) said last month it was offering a new round of

voluntary buyouts to its U.S. salaried workers, the latest in a

series of cost-cutting measures CEO Carlos Tavares is

implementing at the company's American operations.