Stellantis is facing the threat of a nationwide walkout by the United Auto Workers (UAW) following the company's recent decision to lay off 400 employees at its Detroit parts facility.

This latest round of job cuts, announced on November 8, comes just days after Stellantis let go of 1,100 workers at its Ohio plant and 2,450 at a Michigan facility earlier this year, as part of a broader strategy to reduce operating costs amid declining sales figures.

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UAW President Shawn Fain has publicly condemned Stellantis for not adhering to commitments made in last year's collective bargaining agreement. He warned that if the automaker continues its current trajectory of layoffs and plant closures, the union would take necessary action, including potentially striking across all Stellantis locations.

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The UAW alleges that these layoffs violate the contract terms and have filed grievances with the National Labor Relations Board, asserting that Stellantis' actions constitute serious unfair labor practices.

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The situation is further complicated by legal challenges from Stellantis, which has threatened to pursue monetary damages against the union if it calls for a strike. The automaker claims that its recent layoffs are a response to "highly volatile" market conditions and that it retains the right to adjust commitments based on fluctuating demand.

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Political pressure is also mounting, with President-elect Donald Trump indicating he may impose 100% tariffs on Stellantis products if the company shifts manufacturing jobs to Mexico.

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