Stellantis feels pressure from US lawmakers
Yesterday at 06:31 AM
Stellantis is feeling pressure from Congress in the United States. About 80 members of the US Congress urge Stellantis to honor investments commitments in the contract it signed with the United Auto Workers union.
Democratic members of the US House of Representatives and the Senate sent separate letters to Stellantis to honor its investment commitments to the UAW. Senate Majority Leader Chuck Schumer and Senator Dick Durbin were among the Congress members who are putting pressure on Stellantis.
The letters sent to Stellantis specifically mention the legacy automaker's plans to invest $1.5 billion to repoen its assembly plan in Belvedere, Illinois.
"These actions violate the obligations Stellantis made to the UAW," said one letter, seen by Reuters.
The UAW has been making similar claims against Stellantis and urging the company to honor its commitments. In response, the automaker sued the UAW in federal court, denying the union's claims that it violated the contract.
“Stellantis’s recent attempt to justify delays in its contractually mandated investment and production commitments did nothing to assuage our concerns. Stellantis appears resolved to claim market conditions prevent you from honoring these commitments," said a letter from the Democrats in the US House of Representatives.
Stellantis has reportedly been trying to correct its coarse in North America after seeing slipping sales. However, it will take more than declarations to appease the UAW and other groups who have deemed Stellantis' performance as lacking.
Stellantis CEO Carlos Tavares visited Detroit to fix issues with the company’s operations in North America. After the CEO's visit, Stellantis announced plans to invest $406 million in Michigan, particularly for the Sterling Heights Assembly Plant, Warren Truck Assembly Plant, and the Dundee Engine Plant. A month after the announcement, Stellatnis laid off 1,100 workers in its Warren Truck Assembly plant.
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