Nearly 80 senators, including Senate Majority Leader Chuck Schumer and Sen. Dick Durbin, called on automaker Stellantis to honor investment commitments in its contract with the United Auto Workers (UAW).
Stellantis had planned to invest $1.5 billion to restart its assembly plant in Belvidere, Illinois, but the project was delayed and sparked a dispute with the UAW. Despite the automaker’s insistence that it remains committed to investments and has not violated the agreement, lawmakers warned of possible breaches of contractual obligations in two letters sent Wednesday. and expressed concern.
The letter, sent by Democrats in the House and Senate, highlighted Stellantis’ decision to delay reopening its Illinois plant and other investment shifts. Lawmakers asked Stellantis CEO Carlos Tavares to provide a timeline for fulfilling these commitments. Stellantis has recently faced criticism from dealers and shareholders due to declining North American sales, but just one year after Detroit’s six-week strike against the Big Three automakers, Stellantis is facing renewed UAW nationwide strikes. Be prepared for the possibility. The UAW’s grievances stem from promises made in contract negotiations last fall, including reopening an Illinois factory to produce medium-duty trucks by 2027.
Stellantis filed suit against the UAW in federal court over these disputes, arguing that the UAW was not in breach of contract and that it had the right to delay investments if market conditions worsened.
But Democratic lawmakers remain unhappy with that explanation, accusing Stellantis of using market conditions as an excuse to break its promise. Meanwhile, tensions are rising as the UAW continues to organize for a strike vote, and Vice President Kamala Harris publicly criticizes automakers for betraying workers’ trust.
