Stellantis expands U.S. production, will build new Dodge Durango in Detroit

Stellantis told employees Wednesday that the company will build the next-gen Dodge Durango in Detroit—amid prior UAW concerns that the automaker was considering building the SUV in Canada. 

The details: During a Jan. 22 meeting, Stellantis employees were informed—via a letter from North America COO Antonio Filosa—that the company will build its new Durango at the Detroit Assembly Complex-Jefferson facility and a new midsize pickup at its currently shuttered Belvidere Assembly Plant in Illinois.

• The Detroit and Belvidere facilities have been focal points of the United Auto Worker’s 2023 contract negotiations with Stellantis.  

• UAW officials have raised concerns that delays in reopening the Belvidere facility could jeopardize the entire pickup project. 

• The workers’ union filed grievances with the company and even threatened to strike Stellantis regarding the plant concerns. 

Filosa’s letter to employees—which drew praise from UAW President Shawn Fain—speaks of Stellantis’ commitment to grow its automotive manufacturing in the U.S., with plans to invest in two Ohio facilities and another in Indiana.   

Between the lines: Filosa’s letter comes as the US auto industry grapples with the potential impact that tariffs could have on the business amid a host of other challenges that could be exacerbated by the looming threat of levies against Canada and Mexico.   

• In recent days, Trump has doubled down on his plans to impose tariffs against the bordering countries, telling reporters that the levies could go into effect as soon as Feb. 1.

• Filosa informed employees that Stellantis Chairman John Elkan met with Trump and top officials in his administration last week, sharing the company’s commitment to growing its U.S. manufacturing base.

Bottom line: Whether or not the potential tariffs played a direct role in Stellantis’ plans for the Detroit plant and other U.S. facilities isn’t clear. However, given the impact levies could have on Stellantis’ business operations, it’s hard to imagine that the threat of tariffs against Canada and Mexico didn’t have any influence on the company’s announcement.

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