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* Jeff Kolkey at the Rockford Register Star…
As reports surface that Stellantis wants to transform the Belvidere Assembly Plant from a manufacturing facility into an enormous Amazon-style distribution center, union officials say the company is already testing the waters by storing parts at a nearby Yanfeng facility.
A United Auto Workers stand-up strike is approaching a week after its labor agreements with the Big Three automakers — including Stellantis, the maker of Chrysler, Jeep and Dodge and owner of the Belvidere Assembly Plant — expired at midnight Thursday.
It was previously reported Stellantis was seeking the right to close 18 facilities. But CNBC on Monday reported that provision was tied to a plan to possibly close 10 Mopar parts and distribution locations, while investing in modernization, opening other locations and turning the Belvidere plant into a logistics “mega hub.” There has also been talk of manufacturing battery components at the Belvidere plant. […]
Although UAW leaders have sought a new vehicle for Belvidere workers to manufacture, Stellantis on Saturday night issued a statement saying that its contract offer included a “strong future” for the Belvidere Assembly Plant. The statement also said “we stand ready to get everyone back to work as soon as possible.” […]
Stellantis has used the Belvidere Assembly Plant property to store thousands vehicles before distributing them to dealerships across the country. The Belvidere plant is a freight rail carrier hub making it a convenient location to store and ship the vehicles.
* CNBC…
The most recent contract proposal by automaker Stellantis to the United Auto Workers union could lead to the closure of 18 U.S. facilities, but it could also bring new investments and repurpose an idled vehicle assembly plant in Illinois, sources familiar with the discussions told CNBC. […]
The proposal included a potential “Mega Hub” at Belvidere Assembly, which the automaker indefinitely idled in February. […]
Two sources said the parts proposal for Belvidere has been one of several discussions regarding the plant, and the offer could change, based on the talks. Discussions have also taken place about using part of Belvidere — a nearly 5 million-square-foot facility — for electric vehicle battery components, they said.
* WTVO…
On Sunday, Stellantis sent a statement to UAW members, saying: “Once again the Union has mischaracterized the facts. It was made very clear to the UAW leadership that the competitive offer presented on Thursday included a strong future for Belvidere and was connected to the contract deadline. Our intention was to present a strong proposal for Belvidere and, at the same time, avoid a strike for our represented workers. The truth is UAW leadership ignored Belvidere in favor of a strike. As we stated earlier today, ‘we are glad to continue to work on a solution (for Belvidere). We want to have a solution including that (Belvidere).’ When we work together, we win together. We stand ready to get everyone back to work as soon as possible.”
* Crain’s…
The state of Illinois has been working with Stellantis for a couple of years on ways to keep the plant open and to ensure it has a future in the shift to electric vehicles. Lawmakers approved a package of incentives that specifically includes EV-component part makers and manufacturers that convert or expand existing facilities.
posted by Rich Miller
Wednesday, Sep 20, 23 @ 11:35 am
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Fingers crossed.
P.S. It’s so nice to see IL being led by pols selling the state instead of trashing it.
Comment by Norseman Wednesday, Sep 20, 23 @ 11:38 am
Moving from 5,000 high paying manufacturing jobs to an Amazon type distribution center with lower wages is a win somehow?
Comment by Lucky Pierre Wednesday, Sep 20, 23 @ 11:57 am
- Lucky Pierre -
Pro-Union?
lol
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 12:07 pm
“a potential “Mega Hub” at Belvidere Assembly”
This would fit nicely with the rail expansion plans for Belvidere and beyond…
Gov. JB Pritzker has selected Metra to operate intercity passenger rail service from Chicago to Rockford, with stops in Elgin, Huntley, and Belvidere.
https://www.chicagotorockfordrail.org/
Comment by Donnie Elgin Wednesday, Sep 20, 23 @ 12:16 pm
@LP
Always the negative with him. It must be a pleasant life being angry all the time.
Comment by Demoralized Wednesday, Sep 20, 23 @ 12:18 pm
The sad reality is the Fed government has decided to force a fast transition from ICE autos to EV’s when it’s pretty clear the market place isn’t ready. The Biden administration will displace 10’s of thousands of auto workers as the big 3 move more heavily into EV’s and the ultimate climate impact will be questionable al long as China and India fail to move into the green energy environment on the same pace we are. The UAW is paying the brunt of the Presidents environmental agenda
Comment by Sue Wednesday, Sep 20, 23 @ 12:38 pm
This could be Stellantis trolling JB for some of that deal-closing-fund money. But the alternate proposal for the plant could be the start of something good and eventually they might do an ev line there since the other logistics would be in place. The tough part is, nobody’s going to be punching-in at Belvedere anytime soon because the changeover will take time.
Comment by Give Us Barabbas Wednesday, Sep 20, 23 @ 12:44 pm
- Sue -
Define “Fast”
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 12:48 pm
=The sad reality is the Fed government has decided to force a fast transition from ICE autos to EV’s when it’s pretty clear the market place isn’t ready.=
The transition to EVs is occurring with or without government encouragement. If anything US automakers are lagging their European and Asian counterparts. Elon Musk has more to do with this than Joe Biden.
Comment by Pundent Wednesday, Sep 20, 23 @ 1:10 pm
=Moving from 5,000 high paying manufacturing jobs to an Amazon type distribution center with lower wages is a win somehow?=
So LP wants high paying union manufacturing jobs (I added the union part but still)? I thought we were supposed to be “competitive” with Indiana and Missouri? How do we do that if we pay people a living wage. Please clarify because you are getting confusing.
Comment by JS Mill Wednesday, Sep 20, 23 @ 3:20 pm
=The sad reality is the Fed government has decided to force a fast transition from ICE autos to EV’s when it’s pretty clear the market place isn’t ready.=
You are mistaken. The US economy is a market driven economy not subject to central planning like the Chinese. With their love for being autocratic, I can see how the gop platform might confuse you.
Comment by JS Mill Wednesday, Sep 20, 23 @ 3:22 pm
OW- CNBC interviewed 60 car dealers. Outside large urban cities- there is not yet huge demand for EV’s- the big 3 are losing 60k on every EV sold and need ongoing strong ICE sales to subsidize the transition. What the UAW is asking for would put the Big : into bankruptcy as they have at best 6 to 8 percent margins as it is. Being able to pay the CEO’s big pay packages doesn’t mean they have the ability to raise the wages 30 percent or reinstate the former benefit packages. As I said- when the govt puts its fat fingers onto businesses- it usually ends poorly
Comment by Sue Wednesday, Sep 20, 23 @ 3:22 pm
=== What the UAW is asking for would put the Big : into bankruptcy as they have at best 6 to 8 percent margins as it is.===
Explain what the UAW conceded last time to keep the Big 3 from bankruptcy.
You can’t complain about the government’s fat fingers than ignore farm subsidies, for one.
“Fast” is already behind the world, No?
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 3:29 pm
The UAW leadership is furious with Biden. All the IRA money is financing plants in the NonUnion south. You need 40 percent fewer workers to build EV’s and the primary beneficiary of this Stike is Non Union Tesla. It’s political malpractice. At the same time- Biden is being hammered by the left to continue to strangle oil exploration. The US until 2021 was the swing producer keeping oil at 60 a barrel or lower. The Biden policies are the perfect storm as far as domestic auto production all of which precipitated the UAW being forced to stile. It’s not going to end well or their members or the Big 3
Comment by Sue Wednesday, Sep 20, 23 @ 3:36 pm
=As I said- when the govt puts its fat fingers onto businesses- it usually ends poorly=
I dunno, seemed to work ok for theses automakers the last time they filed for bankruptcy and the government bailed them out. And the disparity between worker and CEO pay has only grown since then. But your support of excessive executive pay for entities who rely on government assistance is noted.
Comment by Pundent Wednesday, Sep 20, 23 @ 3:37 pm
- Sue -
Are you now pro-labor AND pro management?
Strikes are also designed to reshape the management/labor relationship
You seemed to ignore what I asked you to address.
You can’t be worried about labor and be concerned about the profit margin of management when the last time management discussed things to labor and existing it was to help the companies exist, now you want to discuss profit margins?
I dunno, - Sue -
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 3:41 pm
Pungent- you have a short memory. Obama imposed strict pay limitations for GM and Chrysler when they took his money. The companies paid off the loans and purchased the stock warrants years ago which allowed them to return to their respective Board approved pay practices. If you want to impose salary restrictions on private companies- move to Cuba. It works great there
Comment by Sue Wednesday, Sep 20, 23 @ 3:44 pm
OW- unlike this administration- I am for free capital markets.
Comment by Sue Wednesday, Sep 20, 23 @ 3:45 pm
=== I am for free capital markets.===
Farm subsidies? Those gone too?
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 3:46 pm
When did I ever post anything in support of farm subsidies. Eliminate all of them
Comment by Sue Wednesday, Sep 20, 23 @ 3:52 pm
=== Eliminate all of them===
Your economics acumen is astounding.
Be well.
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 3:53 pm
==the US until 2021 was the swing producer keeping oil at 60 a barrel or lower.==
“You shouldn’t get off heroin; the dealer’s just dropped the price, you can’t pass up that value…”
…is what I get off of that rant about oil production. The planet’s ecosystem is falling into a petro-fueled blender set on “frappe’” and you think we should hang on to oil as long as possible?
Comment by Give Us Barabbas Wednesday, Sep 20, 23 @ 4:03 pm
=The companies paid off the loans and purchased the stock warrants years ago which allowed them to return to their respective Board approved pay practices.=
Which led, in part, to their prior bankruptcies. And last I checked front line workers were part of the free capital market system as well. You don’t build cars without them. And collectively they’re far more critical to our economy, and their companies, than any board or CEO.
Comment by Pundent Wednesday, Sep 20, 23 @ 4:03 pm
==Being able to pay the CEO’s big pay packages doesn’t mean they have the ability to raise the wages==
So it’s ok to continue to fatten the pocket of the CEO but that’s just too bad you lowly workers? That’s par for the course for your type.
Comment by Demoralized Wednesday, Sep 20, 23 @ 4:54 pm
==I am for free capital markets==
Only in fantasyland does a completely unregulated market work.
Comment by Demoralized Wednesday, Sep 20, 23 @ 4:55 pm
===fantasyland===
Makes me think of Thornton Mellon, back to school, taking a business class…
The problems that - Sue - keeps trying to solve in her arguments are the “simple solutions” that seemingly always lean to hurt those “not like her” or cheering the 1%… which is of course Fantasyland.
To this post, specifically,
The now ridiculous “concerned trolling” for high paying labor jobs or untenable business models, it’s as though keeping things from progressing in the 21st century and a strong management/labor relationship is not conducive to good business… but unregulated free market in that prism of this… is.
I mean…
Comment by Oswego Willy Wednesday, Sep 20, 23 @ 5:03 pm