Stellantis says Illinois investment plans delayed

By David Shepardson and Abhijith Ganapavaram

(Reuters) -Stellantis said on Tuesday its planned investments at Belvidere, Illinois, will be delayed but it is committed to moving forward and is not in violation of its union contract.

On Monday, the United Auto Workers union said some of its local units representing tens of thousands of workers at Stellantis (NYSE:STLA ) were preparing to file grievances and could launch a nationwide strike, accusing the automaker of not honoring production commitments.

Chrysler-parent Stellantis said on Tuesday it had told the UAW of the delay "but firmly stands by its commitment" saying the new timetable is needed "to ensure the company’s future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs."

The UAW did not immediately comment.

Stellantis agreed to build a new $3.2 billion battery plant and invest $1.5 billion in a new mid-size truck factory in Belvidere and add 5,000 total U.S. jobs by 2028 as part of a new contract deal, the UAW said in November.

UAW President Shawn Fain referred to the issue during remarks at the Democratic National Convention on Monday night.

"Let me be clear: Stellantis must keep the promises they

made to America and our union contract. And the UAW will take

whatever action necessary at Stellantis or any other corporation



to stand up and hold corporate America accountable," he said.

"(Stellantis) has not violated the commitments made in the investment letter included in the 2023 UAW collective bargaining agreement and strongly objects to the union's accusations," the company said Tuesday.

Source: Investing.com