Buckle up: Stellantis has joined the MAGA movement.
Maybe not officially, but the huge auto conglomerate has reversed its plans to move production to Mexico— something on the table after escalating tensions with the UAW, beginning with the union’s 2023 strike.
The company’s smartest move? Bringing back performance expert Tim Kuniskis and putting him in charge of the Ram truck line.
Stellantis’ decision might have something to do with Trump’s threat to slap 100% tariffs on anything it ships from south of the border.
It also might have to do with the realization that the company — which owns Ram, Jeep, Dodge, Maserati, Alfa Romeo, and other brands — is badly in need of a course correction after the resignation of CEO Carlos Tavares in December.
At any rate, the company is doing its best to stay on the new administration’s good side.
Ram tough
In a letter to employees, Stellantis North America COO Antonio Filosa revealed that group chairman John Elkann met with Trump ahead of his inauguration and noted Trump’s “enthusiasm” for his strong commitment to the U.S. and growing jobs and the U.S. economy.
Filosa echoed this sentiment, confirming a number of specific actions it will take to “entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the U.S.”
The company’s smartest move? Bringing back performance expert Tim Kuniskis and putting him in charge of the Ram truck line.
He’ll be overseeing production of Ram’s first new midsize pickup — its first since 2011 — at the company’s Belvidere, Illinois, assembly plant. Stellantis shut down production of the plant’s Jeep Cherokee in 2023, a move that helped lead to the UAW strike.
The reopening of the Belvidere plant should return approximately 1,500 UAW members to work.
Durango deal
In addition, the company will move forward with plans to build the next-generation Dodge Durango SUV at its Detroit Assembly Complex. There had been rumors that Stellantis would move Durango production to Canada — prompting the UAW to file charges with the National Labor Relations Board.
Stellantis also confirmed new investment in its Toledo assembly plant — where it makes the Jeep Wrangler and Gladiator — reversing its earlier plans to lay off workers and cut production. Both vehicles will be getting additional tech and other features.
Tooling operations at the Toledo plant will also be expanded, allowing the company to make more “critical” components in-house.
Likewise, Stellantis will beef up its Kokomo, Indiana, plant in order to produce a new four-cylinder engine, “ensuring that the U.S. will be the manufacturing home of this strategic powertrain,” Filosa said.
Making friends
It’s worth noting that Stellantis donated $1 million to Trump’s inauguration, as did Toyota, Ford, and GM.
Neither Stellantis nor Toyota donated to Biden’s inauguration in 2021. Ford and GM did but only to the tune of $250,000 and $500,000, respectively.
Looks like everybody’s ready to play nice in the hopes that Trump will make good on his promises to abolish strict vehicle emission regulations, remove tax credits for EVs, use tariffs to bring back automotive jobs, and make auto loan interest completely tax deductible.
Stellantis will have more to say about its plans at the end of February; as always, we will be watching.
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