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Stellantis announces new 'megahub' distribution center coming to metro Detroit
Stellantis announces new 'megahub' distribution center coming to metro Detroit

Yahoo

time22-05-2025

  • Automotive
  • Yahoo

Stellantis announces new 'megahub' distribution center coming to metro Detroit

Stellantis announced it is bringing a Mopar "megahub" parts distribution facility to metro Detroit in Van Buren Township. The automaker, which owns the Chrysler, Dodge, Jeep, Ram and Fiat brands, announced May 21 it would bring a "state-of-the-art" Mopar parts distribution center to a site just north of Belleville and east of Ypsilanti. Stellantis said the facility, to open in 2027, would support "approximately 488 UAW-represented jobs." The union expressed concern that is fewer jobs than the total employment at four shops being consolidated into the new site. Naming it the Metro Detroit Megahub, Stellantis representatives said the facility will streamline parts distribution for Mopar, Stellantis' aftermarket and replacement parts brand. The distribution facility will incorporate technological sorting systems and robots to identify and retrieve parts, while employees will pack and process products. The goal is to accelerate delivery times for customers and dealers, Stellantis said. The opening of a larger distribution center comes after the sale of several smaller Mopar facilities across the Midwest. Earlier this year, Stellantis announced the sale of several Mopar centers, including two Michigan facilities: one in Center Line in January and another in Marysville about a month later. The automaker sold another facility in Milwaukee early this year. More: Stellantis has worst relations with suppliers in survey yet again Phelan: Note to the next Stellantis CEO: First thing, kill these 4 brands Selling the smaller Mopar operations and opening one larger "Mopar Megahub" is all in the name of consolidation, the company said, while honoring union-negotiated agreements Stellantis and the UAW reached in 2023. "The investment in the Metro Detroit Megahub builds upon Stellantis' 2023 UAW contract agreements," Stellantis said in a statement. While work continues at those facilities for now under a sale-leaseback agreement, the labor force at those soon-to-close facilities will eventually populate the new facility, Stellantis said. They are expecting to transition approximately 488 UAW-represented jobs from Centerline, Warren, Warren Sherwood and Milwaukee to the new Megahub. A spokesperson for Stellantis said to the Free Press that the Marysville workforce will transition to an e-coat facility in Warren. The consolidation of four Mopar shops — which currently employ about 698 people — into one center that will house 488 jobs may precipitate job cuts. UAW Stellantis Department Director Kevin Gotinsky said his union is "absolutely concerned" about Stellantis' consolidation plan. "Our main priority is job security. We will be doing everything in our power to ensure that Stellantis respects our 2023 contract, which guarantees a floor of at least 2,250 UAW-represented employees across the MOPAR network," Gotinsky said. Previously, Stellantis said the new Mopar hub would be "operationally carbon net zero." When asked to confirm whether that was still the case, a spokesperson told the Free Press that Stellantis "intend(s) for all of our facilities to have new systems that will be efficient." Liam Rappleye covers Stellantis. Contact him: LRappleye@ This is a developing story. This article originally appeared on Detroit Free Press: Stellantis to open new Mopar center near Ypsilanti, move 488 jobs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

UAW: Stellantis has scrapped plans for battery plant, parts hub in Belvidere
UAW: Stellantis has scrapped plans for battery plant, parts hub in Belvidere

Yahoo

time11-05-2025

  • Automotive
  • Yahoo

UAW: Stellantis has scrapped plans for battery plant, parts hub in Belvidere

BELVIDERE, Ill. (WTVO) — Stellantis has scrapped plans for an EV battery plant and parts distribution hub in Belvidere, according to the United Auto Workers union Vice President Kevin Gotinsky. On Tuesday, Gotinksy told that the battery plant and parts hub were no longer part of Stellantis' plan for the Belvidere Assembly Plant. The plant has sat idle since 2023. That fall, Stellantis announced it would invest nearly $5 billion in the factory, including an electric vehicle battery plant and a parts distribution hub. The project was in federal funding announced by the Biden administration to help Stellantis convert the Belvidere plant to build electric vehicles. Stellantis said the state had purchased 170 acres of land next to the plant for the factory, which was to be a joint venture with an unannounced business partner. It was expected to launch in 2028. The company cited 'market conditions' for its delay in reopening the plant, as demand for EVs slowed. In January, UAW President Shawn Fain announced the plant would reopen in 2027, putting 1,500 union members back to work. In March, United Auto Workers Local 1268 President Matt Frantzen said the Belvidere Assembly Plant would operate in two shifts once it comes back online, with the company looking to recall Skilled Trades workers in the 1st quarter of 2026, Team Leaders in the 4th quarter, and Team Members in the 1st or 2nd quarter of 2027. In a letter to union members in March, Frantzen said the promised Mopar Mega Hub and battery plant, part of the original union contract, were not included at that stage. In April, Stellantis said it was the Belvidere Assembly Plant in 2027, with production of a midsize pickup truck, but it is unknown whether its drive train would be electric or internal combustion. When asked for a statement on Gotinksy's comments, a Stellantis spokesperson replied, 'Stellantis has no updates to share at this time on the MegaHub or the battery plant.' Stellantis CEO Carlos Tavares announced his exit in December, with the embattled executive handing the reins to chairman John Elkann while efforts were undertaken to find his replacement. Antonio Filosa, the company's chief operating officer for the Americas, has emerged as a. News of the battery plant cancellation comes as a setback in Illinois' objectives to become an electric vehicle manufacturing and supply hub. Gov. JB Pritzker of having 1 million EVs on Illinois roads by 2030, and introduced a Reimagining Electric Vehicles Act (later renamed the Reimagining Energy and Vehicles Act), which incentivized manufacturers to move to the state. Lion Electric, which opened a plant in Joliet to build electric school buses, recently . The state recently pledged $16 million to help EV maker Rivian open a near its headquarters in Normal. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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