Stellantis is feeling pressure from the US Congress. About 80 members of Congress are calling on Stellantis to honor investment commitments in its contract with the United Auto Workers union.
Democratic members of the U.S. House and Senate sent separate letters to Stellantis demanding that it honor its investment commitments to the UAW. Lawmakers putting pressure on Stellantis include Senate Majority Leader Chuck Schumer and Sen. Dick Durbin.
The letter sent to Stellantis specifically mentions the legacy automaker’s plans to invest $1.5 billion to revise its assembly plans in Belvedere, Illinois.
“These actions violate Stellantis’ obligations to the UAW,” one letter obtained by Reuters said.
The UAW has made similar claims against Stellantis and is demanding that the company honor its promises. In response, the automaker sued the UAW in federal court, denying the union’s claims that it violated the contract.
“Stellantis’ recent attempts to justify delays in contractually obligated investment and production commitments have done nothing to allay our concerns. Stellantis is unable to honor these commitments due to market conditions. “They appear determined to argue that they cannot,” the letter from U.S. House Democrats said.
Stellantis is reportedly working to correct poor performance in North America due to sluggish sales. But a declaration alone will not be enough to appease the UAW and other groups that see Stellantis’ performance as insufficient.
Stellantis CEO Carlos Tavares visited Detroit to resolve issues with the company’s operations in North America. After the CEO’s visit, Stellantis announced plans to invest $406 million in Michigan, specifically in the Sterling Heights Assembly Plant, Warren Truck Assembly Plant, and Dundee Engine Plant. A month after the announcement, Stellatonis laid off 1,100 employees at its Warren truck assembly plant.
If you have any tips, please contact us at maria@teslarati.com or X @Writer_0100110.
Stellantis feels pressure from US lawmakers
Source link
