Stellantis is feeling stress from Congress in the US. About 80 members of the US Congress urge Stellantis to honor investments commitments within the contract it signed with the United Auto Employees union.
Democratic members of the US Home of Representatives and the Senate despatched separate letters to Stellantis to honor its funding commitments to the UAW. Senate Majority Chief Chuck Schumer and Senator Dick Durbin have been among the many Congress members who’re placing stress on Stellantis.
The letters despatched to Stellantis particularly point out the legacy automaker’s plans to speculate $1.5 billion to repoen its meeting plan in Belvedere, Illinois.
“These actions violate the obligations Stellantis made to the UAW,” stated one letter, seen by Reuters.
The UAW has been making comparable claims towards Stellantis and urging the corporate to honor its commitments. In response, the automaker sued the UAW in federal court docket, denying the union’s claims that it violated the contract.
“Stellantis’s current try and justify delays in its contractually mandated funding and manufacturing commitments did nothing to assuage our considerations. Stellantis seems resolved to assert market situations forestall you from honoring these commitments,” stated a letter from the Democrats within the US Home of Representatives.
Stellantis has reportedly been making an attempt to right its coarse in North America after seeing slipping gross sales. Nonetheless, it can take greater than declarations to appease the UAW and different teams who’ve deemed Stellantis’ efficiency as missing.
Stellantis CEO Carlos Tavares visited Detroit to repair points with the corporate’s operations in North America. After the CEO’s go to, Stellantis introduced plans to make investments $406 million in Michigan, notably for the Sterling Heights Meeting Plant, Warren Truck Meeting Plant, and the Dundee Engine Plant. A month after the announcement, Stellatnis laid off 1,100 staff in its Warren Truck Meeting plant.
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