The heat is on GM as Stellantis, striking workers reach deal

Stellantis has reached a deal with the United Auto Workers (UAW) union, ending strike action and extinguishing a burning hole in the company’s wallet.

The brand follows Ford in reaching a tentative deal with the UAW. Similar to the situation with Ford, 43,000 Stellantis workers will return while the ratification process gets underway.

Workers had been striking at Stellantis’ Toledo, Ohio plant, which produces the Jeep Gladiator and Wrangler, and the Sterling Heights, Michigan plant that produces the Ram 1500. The UAW’s strike action has also included parts and distribution facilities.

Stellantis now becomes the second of the ‘big three’ American automakers to find a compromise – allowing the company to finally restart production lines.

“Once again, we have achieved what just weeks ago we were told was impossible,” said UAW president Shawn Fain.

“Going into these negotiations, the company wanted to cut 5000 jobs across Stellantis. Our Stand Up Strike changed that equation.

“Not only did we not lose those 5000 jobs, we turned it all the way around. By the end of this agreement, Stellantis will be adding 5000 jobs. We truly are saving the American dream.”

However, Reuters reports Stellantis is worried the UAW’s demands will hurt the company as it tries to compete with American electric vehicle producer Tesla and international mega producer Toyota. Both of those competitors are non-unionised.

Despite the company not publicising any loss estimates, the 44 day-long strike action has taken its toll on Stellantis.

Wells Fargo analyst Colin Langan told CNN Business the strike action at Stellantis’ Sterling Heights plant is estimated to have increased the company’s weekly losses to US$200 million (A$315.5 million).

The strikes have had the unprecedented outcome of reviving one of Stellantis’ plants. As part of the announcement, the company will also establish a new battery plant.

“Through the power of our Stand Up Strike, we have saved Belvidere,” said UAW vice president Rich Boyer, referring to the Illinois plant that until this year produced the Jeep Cherokee.

“Eight months ago, Stellantis idled Belvidere Assembly Plant, putting 1200 of our members on the street. From