Stellantis plans to make Ram pickups in Mexico, WSJ reports

(Reuters) – Chrysler parent company Stellantis is expanding its factory complex in northern Mexico to build Ram 1500 pickup trucks, the Wall Street Journal reported on Tuesday.

Stellantis has built additional factory space next to its existing plant in Saltillo, Mexico, the report said, citing people familiar with the matter.

According to satellite images reviewed by the newspaper, two buildings about half a kilometer long have been constructed in recent months.

Stellantis said it has been manufacturing this vehicle in Mexico since 2008 and that no further announcements have been made about Ram 1500 production.

The French-Italian automaker said in a statement it recently announced plans to invest more than $235 million in the Sterling Heights assembly plant in Michigan to build future electric versions of the pickup.

Stellantis will continue to make Ram trucks at its Michigan plant, it said.

It’s not clear whether the proposed factory space in Saltillo would be used to produce battery- or gas-powered versions of Ram trucks, the WSJ report said.

The report on Mexico’s plans comes as the United Auto Workers union considers multiple US strikes against Stellantis. She claims the company failed to honor its obligations under last year’s contract, which was signed after a six-week strike that cost the company around 750 million euros ($816.90 million) in profit.

In August, Stellantis announced plans to lay off up to 2,450 factory workers from its Warren Truck assembly plant outside Detroit after halting production of the Ram 1500 Classic truck.

($1 = 0.9181 euros)

(Reporting by Shivani Tanna and Chandni Shah in Bengaluru; Editing by Alan Barona and Rashmi Aich)