New vehicles in union contract agreements
【Summary】Automakers Stellantis, Ford, and General Motors have revealed their plans for new vehicles in the recently negotiated union contract agreements. Stellantis intends to build a new midsize pickup truck and develop battery-run versions of six Jeep, Ram, and Dodge vehicles. Ford plans to introduce at least three new electric vehicles to preserve jobs at various factories, while General Motors aims to manufacture six new electric vehicles, including a full-size SUV.
Stellantis, the Detroit automaker, has announced plans to build a new midsize pickup truck as well as battery-run versions of six Jeep, Ram, and Dodge vehicles. Meanwhile, Ford has revealed its vision for at least three new electric vehicles that will help preserve jobs at several factories. General Motors also has plans to build at least six new electric vehicles, including a full-size SUV. These production plans were revealed as part of the tentative contract agreements that ended the six-week strikes by the United Auto Workers union.
The new agreements between the automakers and the union not only include significant pay and benefits increases, but also improvements in job security. Furthermore, the agreements provide a blueprint for the cars and trucks that will be built in the coming years and where they will be manufactured. Many of the plans involve the continuation of vehicles that the automakers already produce. Additionally, there are plans for the production of new vehicles over the next few years.
The contracts will be voted on by approximately 146,000 union members in the next two weeks. Workers at 10 Ford facilities have already voted overwhelmingly in favor of the agreements. If approved, the contracts will be in effect through April 2028. One notable achievement of the UAW is the commitment from the automakers to build new electric vehicles at several factories. This expansion of EV production is expected to preserve jobs and potentially create new ones as the nation transitions from gas engines to batteries.
All three automakers have embraced the transition to electric vehicles and have set goals for EVs to represent roughly half of their U.S. sales by 2030. The Biden administration's 2022 Inflation Reduction Act has also increased federal tax credits for buyers of new and used EVs, aligning with the automakers' goals. However, it remains to be seen whether consumer demand for EVs in the coming years will justify the automakers' plans to accelerate production.
In the meantime, the automakers are moving forward with their ambitious plans. Stellantis, for example, plans to construct an EV battery factory in Belvidere, Illinois, creating 1,300 jobs. They also have plans to build battery-electric versions of the Jeep Wrangler, Jeep Wagoneer, Grand Wagoneer, and the Ram REV truck. Ford, on the other hand, will be making at least three new electric vehicles, including an electric truck, at various locations. General Motors will also be keeping several factories busy building new electric vehicles, including the Cadillac Lyriq and electric versions of the Chevrolet Silverado and GMC Sierra pickup trucks.
Overall, the automakers' production plans under the new contracts involve a mix of electric and non-electric vehicles. Stellantis, Ford, and GM are all investing billions of dollars in their factories to support these plans. The contracts represent a significant step forward in the transition to electric vehicles and provide hope for job security and growth in the industry.
- "Stellantis, Ford and GM plan to build more EVs as part of new contracts with UAW" - The Detroit News
- "UAW Strikes Tentative Deals With Ford, Stellantis, GM" - The Wall Street Journal
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