Stellantis, currently finds itself at the center of a fairly crucial challenge to determine what will be the future of its presence in the United States, which until now has been one of the company’s most prominent markets. CEO Carlos Tavares, is currently in talks with Michigan Governor Gretchen Whitmer. The discussion between the two, concerns what could be the next fate of the company’s headquarters, namely the Chrysler Tech Center, located in Auburn Hills.
Stellantis in talks with the state of Michigan
Stellantis CEO Carlos Tavares is in talks with Michigan Governor Gretchen Whitmer regarding the automaker’s headquarters located in Detroit. Stellantis, is on one side under pressure in the U.S., particularly with suppliers, dealers, and even unions, such as United Auto Workers, with which disputes have been going on for months.
The company has also received rather negative reactions for what have been sharp declines in sales and profits in recent periods. Stellantis also has been sharply criticized for numerous mass layoffs, some of them even in Michigan. Stellantis masters top U.S. brands, such as Jeep, Dodge, Ram, and Chrysler, and it is because of the location that it is, for the time being, based in Michigan that it has historically managed to be the main hub of these activities.
Therefore, facing increasing pressures and changes, the company led by Carlos Tavares is seriously considering and evaluating the relevance of its Chrysler Tech Center. It is, among other things, a major 5.4-million-square-foot facility located in Auburn Hills, for the future of its operations.
Gretchen Whitmer tries to convince Carlos Tavares
Gretchen Whitmer, Michigan’s governor, told Auto News the footprint the state will have in the future may well be different from that of the past. Moreover, she made it clear that the top priority of his administration is specifically to ensure Stellantis remains permanently in Michigan. Whitmer also added that he has had several productive conversations with Tavares, but that as yet there would be nothing to officially declare. Finally, the MI governor added that in the meantime of Stellantis thinking about this important decision, his administration will do everything to try to make sure that Stellantis remains faithfully with its Michigan operations.
Stellantis in Michigan, between investment and uncertainty
Despite this, last month, Stellantis still announced plans to invest more than $406 million in three Michigan plants. In fact, these investments will go to the Sterling Heights assembly plant, the Warrant truck assembly plant, and the Dundee engine plant.
Now, this decision to leave Detroit-if Stellantis actually makes it-could have a particularly important impact on the local economy and the U.S. automotive sector. This choice, however, is currently also dictated by a number of numerous factors. The principal ones are undoubtedly the company’s declining sales and profits, intense union pressures that show no signs of abating, and the great need to reorganize operations in an environment that is changing too rapidly. So all that remains is to wait for Stellantis’ final decisions on whether it will still have a presence in Michigan or not.