Stellantis, the automotive conglomerate, has issued a warning regarding the possible relocation of production for the existing Ram 1500 pickup truck from a suburban Detroit factory to Mexico, as disclosed by a union representative on Sunday.
Rich Boyer, Vice President of the United Auto Workers (UAW) and head of the Stellantis unit within the union, shared that discussions about this potential move have arisen within the context of ongoing contract negotiations. These negotiations are being conducted in parallel, though separately, with General Motors, Stellantis, and Ford Motor.
Boyer detailed the company’s proposal, which includes the assembly of a new all-electric Ram pickup truck at the Sterling Heights Assembly Plant. This facility currently serves as the primary production site for Ram light-duty pickups.
This prospective shift is likely to elicit political resistance and could impact union membership, given that electric vehicles (EVs) generally require fewer employees for manufacturing. Additionally, the introduction of an all-electric pickup raises uncertainties about its market success compared to the current internal combustion engine (ICE) model, potentially leading to less job stability for union members.
Stellantis, which already manufactures certain Ram pickups in Mexico, refrained from confirming or refuting the potential move. The company stated that its decisions about product allocation to U.S. plants will hinge on the ongoing negotiations’ outcomes and a plant’s capacity to meet specific performance benchmarks, encompassing quality improvement, reduced absenteeism, and overall cost efficiency.