Stellantis has threatened to move Ram 1500 production to Mexico, union leader says

Automaker Stellantis has threatened to move the production of Ram 1500 pickup trucks from suburban Detroit to Mexico, a union leader said Sunday. 

“Then it said they want to take their Ram 1500 [internal combustion engine] and send it to Mexico,” said United Auto Workers (UAW) vice president Rich Boyer at a “Sunday Solidarity” rally in Warren, Mich., on Sunday with hundreds of union members. 

Boyer, who leads the union’s Stellantis unit, said the automaker had discussed the move during the ongoing contract negotiations between UAW and the Big Three: Ford, General Motors and Stellantis.

Negotiations began in early July over pay increases, pensions, career security and concerns over the industry’s shift to electric vehicles (EVs), which require fewer workers to make.

The possibility of moving production of the current Ram 1500 to Mexico fuels automakers’ concerns that the push for EVs will risk their jobs and compensation. 

“That’s an American product, it’s going to stay here in America,” Boyer said, calling for the support of union members. 

He said Stellantis discussed producing a new all-electric Ram pickup truck at the Sterling Heights Assembly Plant in Sterling, Mich., which currently makes most of the Ram light-duty pickups, according to CNBC. 

Boyer called out Stellantis CEO Carlos Tavares, arguing he does not care about U.S. autoworkers. 

“These companies have no respect for us,” Boyer said. “These companies think that you’re overpaid and underworked.”

In a statement shared with The Hill on Monday, Stellantis said, “Product allocation for our U.S. plants will depend on the outcome of these negotiations as well as a plant’s ability to meet specific performance metrics including improving quality, reducing absenteeism and addressing overall cost.

“As these decisions are fluid and part of the discussions at the bargaining table, we will not comment further,” the statement added.

The White House has pushed for accelerated electric vehicle production, fueling the concerns of automaker union members. Under a new proposal released by the Environmental Protection Agency (EPA) in April, two-thirds of new cars could be electric by 2023. 

Last week, the Biden Administration released a statement in response to the contract negotiations, arguing a clean energy economy “should provide win-win opportunities for auto companies and unionized workers.” 

“Companies should use their process to make sure they enlist their workers in the next chapter of the industry by offering them good paying jobs and a say in the future of their workplace,” the statement said. 

The current contract between UAW and the Big Three expires at 11:59 p.m. on Sept. 14, giving the two parties less than a month to come to an agreement. Boyer told CNBC that the ongoing negotiations have been “slow and confrontational.” 

—Updated at 5:19 p.m.