By Nora Eckert
DETROIT (Reuters) -Stellantis is increasing its truck plant in Mexico as a “reduction valve” for a U.S. truck manufacturing facility anticipated to succeed in capability sooner or later, Chrysler model CEO Christine Feuell stated on Tuesday on the sidelines of a Reuters occasion in Detroit.
Requested why that additional capability wasn’t added within the U.S., and if the Mexico growth was an effort to slash spending following a brand new settlement with the United Auto Staff union, Feuell stated it was not a cost-cutting transfer.
“The plant in Saltillo does a extremely good job managing the complexity they usually’re already constructing pickup vans down there,” she stated.
The long run dwelling of the Ram 1500 truck, which is presently constructed at Sterling Heights meeting close to Detroit, is beneath query given the Mexico growth.
Stellantis (NYSE:) isn’t presently constructing Ram 1500 vans in Saltillo, Feuell stated. She declined to say if they might accomplish that sooner or later, following a report that the automaker was including manufacturing facility house subsequent to the Saltillo facility for that goal.
The automaker’s manufacturing plans have come beneath higher scrutiny because the UAW is laying the groundwork for a nationwide walkout towards Stellantis, claiming it has not stored its contract guarantees. The corporate stated it has stored its commitments, and has in flip sued the UAW in federal court docket over its allegations.
Stellantis is within the midst of great management adjustments as CEO Carlos Tavares makes an attempt to show round sliding gross sales and revenue in North America forward of his deliberate 2026 departure.
Tavares indicated earlier this yr he was able to axe any of its 14 manufacturers that is not performing. Feuell stated Chrysler’s positioning is robust.
“Chrysler has a really well-funded product and expertise roadmap,” she stated.
