After a series of negotiations with the United Auto Workers (UAW), Stellantis has reportedly offered to close 18 of its facilities in the United States, as part of a broader labor deal intended to improve the overall competitiveness of the newly-formed automotive giant.
The announcement from Stellantis, which was recently formed from a merger between Fiat Chrysler Automobiles and Peugeot, could lead to the closure of two to three manufacturing facilities, as well as the sell-off of certain assets. The proposal also includes plans to cut jobs at multiple locations on a voluntary basis, in exchange for payment packages and job placement assistance.
The details of Stellantis’s offer to UAW are, as of yet, unknown. Reports of the deal were first made by Detroit News. It is still uncertain if the UAW has accepted the proposal or what the terms of the final agreement will be.
The development follows a series of labor strikes involving Fiat Chrysler and the UAW, which have been ongoing since 2019. The talks have been focused on addressing labor issues among the two sides and providing the UAW an equitable share in the newly-formed entity.
The merger between FCA and PSA is the most significant auto industry consolidation since Fiat Chrysler merged with GM in 2009. It is a multi-billion dollar deal that is expected to benefit both companies significantly, leading to a major reduction in costs and increased production.
With Stellantis offering to close 18 of its facilities in the US as part of a labor deal, the company will be able to streamline operations and remain competitive in the global automotive market. It remains to be seen if the UAW will accept the offer or if details of a potential agreement can be finalized in the near future.