Stellantis faces unprecedented UAW strikes a year after national walkout

United Auto Workers union is eying multiple U.S. strikes against French-Italian carmaker Stellantis about a year after a national walkout cost Detroit Three automakers billions of dollars and idled 50,000 workers. Accusing Stellantis of breaking its contract promises, UAW President Shawn Fain on Tuesday night warned that several union local chapters were laying groundwork for strikes that could collectively shut down automaker.

latest UAW threats follow last year's six-week strike that cost Stellantis about 750 million euros ($834.08 million) in profit. union also hit General Motors and Ford during historic 2023 walkout, and drew U.S. President Joe Biden to picket line to show his support for striking workers.

Stellantis' rth American operations have been struggling, and strike threat looms as race for White House between Democrat Kamala Harris and Republican Donald Trump heats up. Harris, who is currently U.S. vice president, has been endorsed by UAW.

Union strikes outside four-year contract negotiations are unusual, and a large walkout at Stellantis just one year after its labor deal was penned, in an election year, would be unprecedented.

" union has picked perfect time to target Stellantis, because rth American group is likely at its weakest point," said Sam Fiorani, vice president at research firm AutoForecast Solutions.

Fain said on Tuesday that 28 locals, covering tens of thousands of workers, h filed grievances against Jeep parent Stellantis and that 18 were at or near point where y could call for strike authorization votes - with at least one expected in next few days. Fain, who rose through union's ranks after working as an electrician for Chrysler, brought a more combative approach and a fresh leership team to union after his election in 2023.

location and timing of first strike authorization vote is still uncertain, but locals that filed grievances last month included plants in Toledo, Ohio; Kokomo, Indiana, and several in Michigan. UAW has said roughly 98% of Stellantis' membership is covered through those grievances, making potential strikes as powerful as a nationwide walkout.

Late on Tuesday, Stellantis said that union leer h t offered any data or information to support his claims.

"(Fain) continues to willfully dam reputation of company with his public attacks which is helpful to one including his members," Stellantis said in a statement. "We would all be better served if se issues were dressed across table with productive, respectful and forward-looking dialogue. A strike does t benefit anyone."

Fain fired back on Wednesday in a letter to Stellantis that was seen by Reuters.

"Under CEO Carlos Tavares, Stellantis is quickly turning into a global case study in corporate mismanment," he said, offering several dates to discuss issues.

Asked for comment on Wednesday, Stellantis said it stood by its earlier statement.

UAW's grievances center around product and investment commitments me during contract negotiations last autumn. Delays of a planned multibillion-dollar investment into a new battery plant and factory in Belvidere, Illiis, and possible plans by Stellantis to move production of Dodge Durango SUV out of U.S. have emerged as main sticking points for UAW.

Stellantis said it has t confirmed plans to move Durango. union said company has never denied it plans to move production of SUV, according to letter sent on Wednesday.

contract signed between UAW and automaker allows company to delay financial commitments if market conditions worsen.

TROUBLES IN U.S. MARKET

Stellantis' U.S. business has faltered over past year, and dealers and shareholders have publicly called out its lagging sales, bloated inventories and tumbling share price. Tavares has said he is focused on improving Stellantis' performance in U.S., and stated a willingness to shut down brands globally if y do t make money. Last month, he visited U.S. with intention of developing a plan to improve U.S. operations.

Still, automaker's U.S. vehicle inventories are larger than those of a year ago before strike, which could protect Stellantis from feeling any immediate pain if workers hit picket lines, analysts said. Its 77 days' supply of vehicles at end of August was up 18 days from same time last year, according to industry firm Cox Automotive.

However, UAW could target plants that make higher-demand vehicles, like Jeep SUVs, Fiorani said. A more targeted approach would allow UAW to spend less money supporting striking workers. A new collective strike w would capture attention of White House in run-up to v. 5 U.S. election. Michigan is a battleground state, which both Harris and Trump have visited several times.

Officials with Harris and Trump campaigns could t immediately be reached for comment.

Fain said UAW in last year's deal won right to strike over product and financial commitments. However, that could be tested in court, said Art Wheaton, labor professor at Cornell University.

A strike authorization does t necessarily mean a strike will occur.