Stellantis confirmed its intention to consolidate Mopar operations with a new $388 million “mega hub” 27 miles west of Detroit, but the UAW says the move would eliminate 210 jobs.
The company said in a news release on May 21 that the highly automated facility in Van Buren Township, Mich., will launch in 2027 and support 488 UAW-represented jobs, confirming a report this month by Automotive News affiliate Crain’s Detroit Business.
Stellantis spokesman Frank Matyok declined to comment on whether there will be job cuts but said the plan is “really good” for Van Buren Township and that the automaker is “honoring our commitment to the 2023 UAW contract.”
Kevin Gotinsky, the UAW’s Stellantis department director, said the company is below the Mopar employment levels obligated under the 2023 collective bargaining contract. The mega hub in Southeast Michigan would consolidate four locations employing 698 people.
“If these numbers remain unchanged, we will lose an additional 210 jobs,” Gotinsky told Crain’s Detroit. “So yes, we have major concerns at this time.”
Mopar became a central issue in 2023 negotiations with the UAW, which orchestrated walkouts at several parts plants around the country in a stand-up strike. The union’s pact with Stellantis eliminated tiered wages at Mopar and increased employee pay by up to 76 percent, according to the UAW.
Stellantis sold its massive Mopar complex this year in Center Line, Mich., once considered the world headquarters of the automaker’s parts division.
The new 2 million-square-foot parts distribution hub would sit on a 350-acre property across from Willow Run Airport. It would consolidate parts plants in Center Line, Warren, Mich., and Milwaukee, where operations will continue until the hub opens.
The company also recently sold its Mopar plant 54 miles northeast of Detroit in Marysville, set to move into the Warren Sherwood location, which will handle e-coat upfitting operations, according to the release. Gotinsky said the company has not shared planned job numbers at the Warren Sherwood plant after it consolidates Marysville.
“The move aligns with Stellantis’ long-term plan to modernize and centralize its service parts distribution network for improved efficiency and sustainability,” the Stellantis release said.
The mega hub will use an AutoStore system involving “compact robots that navigate tracks above a high-density grid of storage bins to retrieve parts and deliver them to workstations, where employees pack and process final shipments.”
The project is not a done deal. It must get approval from the township planning commission and the Michigan Department of Environment, Great Lakes and Energy because it involves developing wetlands. As of May 2, Stellantis had not signed the planned 20-year lease with joint venture developer Hillwood/Sterling Group.
The proposed hub, unveiled quietly at a small township meeting earlier this month, is modeled after the recently launched Mopar depot in New York, according to the company.
“The future site will be state-of-the-art with new technology and innovation, providing a safe and modern working environment for our employees to deliver cleaner and more environmentally responsible operations,” it said.
