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Automaker Stellantis has discussed moving pickup truck production from the U.S. to Mexico, union leader says

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UAW Vice President Wealthy Boyer addresses union members throughout a “Solidarity Sunday” rally on Aug. 20, 2023 in Warren, Mich.
Michael Wayland / CNBC

WARREN, Mich. – Automaker Stellantis has threatened to maneuver manufacturing of the present Ram 1500 pickup truck from a manufacturing facility in suburban Detroit to Mexico, a union chief stated Sunday.

United Auto Staff Vice President Wealthy Boyer, who heads the union’s Stellantis unit, stated the automaker has mentioned the transfer throughout ongoing contract negotiations which can be occurring concurrently however individually between the UAW and Common Motors, Stellantis and Ford Motor.

Boyer stated the corporate’s plans would come with producing a brand new all-electric Ram pickup truck on the Sterling Heights Meeting Plant, which at present produces many of the Ram light-duty pickups.

Such a transfer would seemingly obtain some political pushback. It additionally would doubtlessly impression the union’s membership, as EVs require fewer staff to supply them. There’s additionally no assure that an all-electric pickup can be as profitable as the present inside combustion engine (ICE) mannequin, that means much less job safety for members.

Boyer, talking to lots of of union members throughout a “Sunday Solidarity” rally, did not maintain again his displeasure in regards to the potential plans, calling out Stellantis CEO Carlos Tavares for not caring about U.S. auto staff.

“He do not give a s*** in regards to the American auto employee,” Boyer stated sporting a crimson UAW shirt with “UNITED WE STAND DIVIDED WE FALL.” “They’ve stated they need to take the Ram 1500 ICE and ship it to Mexico.”

Staff construct 2019 Ram pickup vans on ‘Vertical Adjusting Carriers’ on the Fiat Chrysler Vehicles (FCA) Sterling Heights Meeting Plant in Sterling Heights, Michigan, October 22, 2018.
Rebecca Prepare dinner | Reuters

Stellantis, which already produces some Ram pickups in Mexico, didn’t affirm nor deny the potential transfer, saying in a press release: “Product allocation for our U.S. crops will depend upon the result of those negotiations in addition to a plant’s means to fulfill particular efficiency metrics together with enhancing high quality, decreasing absenteeism and addressing general value.

“As these selections are fluid and a part of the discussions on the bargaining desk, we is not going to remark additional.”

UAW President Shawn Fain stated he believes relocating the truck manufacturing would “be an enormous mistake on the a part of Stellantis to attempt it.”

“These are our jobs and that is our car. We anticipate to maintain that work,” he stated.

Talking with CNBC after the occasion, UAW’s Boyer described the continued negotiations with Stellantis as “sluggish and confrontational.”

Fain, who started main the union earlier this yr and has taken a extra confrontational tone with the negotiations, stated he wish to attain tentative agreements with the businesses within the coming weeks forward of the offers expiring at 11:59 p.m. ET, Sept. 14.

UAW President Shawn Fain addresses union members throughout a “Solidarity Sunday” rally on Aug. 20, 2023 in Warren, Mich.
Michael Wayland / CNBC

‘When Labor Day hits, we higher have agreements. If we do not, there’s going to be issues,” Fain stated, declining to foretell the probability of a strike in opposition to one or all three of the automakers. “We’re not married to something proper now.”

Fain earlier this month publicly threw a current proposal from Stellantis right into a trash bin throughout a Fb Dwell occasion with members.

Contract talks between the union and automakers often start in earnest in July forward of mid-September expirations of the earlier four-year agreements. Usually, one of many three automakers is the lead, or goal, firm that the union selects to barter with first and the others lengthen their deadlines. Nevertheless, Fain has stated this yr could also be totally different, with out going into particular particulars.

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