A few days ago, Stellantis sold its Tipton, Indiana facility in the United States to IRH Manufacturing, a company that produces solar panels. Here, from 2014 to 2023, the automotive group produced more than five million transmissions for its vehicles. While this is excellent news for the city’s economy, it immediately raised concerns for others. The difficulties in the North American market are clear: inventories with endless stocks, prices that are too high, and a lack of incentives. As a result, dealerships are struggling, and some are closing due to excessive expenses. This would be the reason behind the sale of two Stellantis plants in the United States: cutting costs that are too high to sustain. But will the group stop here?
Stellantis sells two plants in the United States: will the same happen to Belvidere as well?
In recent months, Stellantis has had to defend itself against accusations from the UAW union and the great-grandnephew of Chrysler‘s founder, following the postponement of the reopening of the Belvidere plant, part of the agreement reached after strikes that lasted for several weeks in 2023. The plant in question closed at the beginning of last year, and the sale of the Tipton and Mt. Elliott Tool and Die plants only adds fuel to the fire.
The Stellantis Mt. Elliott Tool and Die plant in Detroit was purchased by Laepple Automotive, a German automotive supplier, for $13.5 million. This is a historic facility, acquired by Chrysler in 1956 and inactive since 2018. The automotive group has other inactive plants in the country, and many are wondering if Stellantis will stop here or continue with this strategy to cut costs.
Following the postponement of the resumption of activities at the Stellantis plant in Belvidere, many believe that a similar fate awaits this facility as well. This is despite the group expressing its intention to reopen it, without providing precise indications on a new date. The situation is dramatic and sees brands like Alfa Romeo in extreme difficulty, so much so that dealers are forced to offer discounts of up to $15,000 to get rid of vehicles. The same goes for the Fiat 500e, which made its debut in the country a few months ago but has only recorded about a hundred sales. The responsibility for improving the situation could fall on Fiat Grande Panda and Alfa Romeo Junior, called upon to boost sales of their respective brands in the United States.