Stellantis Seeks To Sell Auburn Hills HQ Amidst Historic UAW Strike: Report

Stellantis Seeks To Sell Auburn Hills HQ Amidst Historic UAW Strike: Report

Time Stamp: October 17, 2023 4:30 AM
Source Node: 2940863

The United Auto Workers (UAW) strike in the United States, currently the largest in history, has brought to the forefront the contentious labor negotiations between the organization and major automakers. In the midst of this ongoing dispute, Stellantis, the company behind Jeep, Dodge, Alfa Romeo, and many other brands, has reportedly made a bold proposal to seek the unilateral right to sell its North American headquarters and technical center in Auburn Hills, Michigan, along with 17 other facilities.

According to an article by The Detroit News, this proposal is part of Stellantis’ fourth counteroffer to the UAW, and it has raised concerns about the future of these facilities and the impact on workers and communities. The company is not only one of the largest automakers in the United States but also the largest employer in Auburn Hills. It’s essential to note that this proposal doesn’t necessarily indicate that Stellantis is abandoning Auburn Hills. Instead, according to the publication, it offers the company flexibility and options for the future of its 500-acre campus, which includes labs, engineering facilities, and design studios. The Auburn Hills headquarters has historical significance as it was formerly Chrysler‘s world headquarters.

The UAW represents salaried employees at this location, and any decision to sell it would require the union’s approval. Stellantis is also contemplating similar actions for several other facilities across the United States. This proposal came shortly before the UAW declared a strike at Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio, along with Ford’s Bronco and Ranger plant in Wayne and General Motors’ Wentzville midsize pickup and commercial van plant outside St. Louis.

“We are proud to be the home of the Stellantis North America Headquarters. As Stellantis stands as the largest employer in our thriving community, we recognize the importance of addressing recent reports surrounding the closure of 18 US facilities. To date, we have received no indications or information suggesting that Stellantis intends to shut down its headquarters in our city,” Auburn Hills Mayor Kevin McDaniel said in a statement yesterday.

Stellantis’ Chief Operating Officer in North America, Mark Stewart, clarified that the targeted sites were primarily Mopar aftermarket parts distribution centers that the company intends to modernize. He emphasized that the proposal would not result in job reductions, but it could entail the closure or restructuring of some underutilized locations.

The UAW strike against Stellantis, Ford, and GM is emblematic of the evolving landscape of the automotive industry. As major automakers seek to modernize and adapt to new technologies, they must also address labor concerns and negotiate with the UAW to ensure the welfare of workers and the long-term sustainability of the industry. The proposal to sell the Auburn Hills headquarters and other facilities is just one facet of these complex negotiations, and the outcome will significantly impact the future of the American auto industry.

“The discussion was constructive and focused on where we can find common ground to reach an agreement that provides a bridge to the future by enabling the company to meet the challenges of electrification,” an official statement from Stellantis reads after talks with the UAW. “Together with the UAW, we have the opportunity to establish a framework in this contract that will allow the company to be competitive during this historic transformation and bring our workforce along on this journey.”

Just a few days ago, UAW President Shawn Fain announced the UAW strike is entering a more aggressive stage. 

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