Stellantis, the parent company of Chrysler, plans to invest $18.9 billion in the U.S. by April 2028, according to a tentative agreement with the United Auto Workers (UAW). The investment includes $1.5 billion for the production of a new midsize pickup truck at an idled factory in Belvidere, Illinois.
The agreement, which covers around 43,000 UAW members, is set for a 4½-year term, and the proposed contract must still be ratified by the union members. The announcement follows targeted strikes by the UAW against Stellantis, General Motors, and Ford Motor, which began on September 15 after the sides failed to reach agreements covering 146,000 UAW members by a strike deadline.
The UAW called the tentative agreement with Stellantis the “most lucrative contract our union has won in decades.” The Belvidere plant, which was idled in February 2022, will be reopened as part of the deal. The UAW secured $8.1 billion in product commitments from Stellantis, with other planned investments including $1.5 billion each to a Dodge-Jeep plant in Detroit, a Jeep complex in Ohio, $1.4 billion at a Ram plant in Sterling Heights, Michigan, and $600 million for Stellantis’ Warren Truck plant in suburban Detroit.
Stellantis also plans to invest $3.2 billion in a new joint-venture battery plant in Belvidere, slated to open in 2028, as well as previously announced battery investments of $6.2 billion for two joint-venture battery facilities in Kokomo, Indiana. The deal includes significant pay increases, bonuses, and other enhanced benefits for autoworkers, such as profit-sharing payments and a $5,000 ratification bonus.
The raises include an 11% increase upon ratification, followed by a 3% bump-up in the next three years and a 5% increase in September 2027. Voting on the tentative agreement is expected to take place over the next couple of weeks.
