Reuters Events: Chrysler brand CEO says Mexico plant expansion is 'relief valve'

By Nora Eckert

DETROIT (Reuters) -Stellantis is expanding its truck plant in Mexico as a "relief valve" for a U.S. truck factory expected to reach capacity in the future, Chrysler brand CEO Christine Feuell said on Tuesday on the sidelines of a Reuters event in Detroit.

Asked why that extra capacity wasn’t added in the U.S., and if the Mexico expansion was an effort to slash spending following a new agreement with the United Auto Workers union, Feuell said it was not a cost-cutting move.

“The plant in Saltillo does a really good job managing the complexity and they’re already building pickup trucks down there,” she said.

The future home of the Ram 1500 truck, which is currently built at Sterling Heights assembly near Detroit, is under question given the Mexico expansion.

Stellantis is not currently building Ram 1500 trucks in Saltillo, Feuell said. She declined to say if they would do so in the future, following a report that the automaker was adding factory space next to the Saltillo facility for that purpose.

The automaker's production plans have come under greater scrutiny as the UAW is laying the groundwork for a nationwide walkout against Stellantis, claiming it has not kept its contract promises. The company said it has kept its commitments, and has in turn sued the UAW in federal court over its allegations.

Stellantis is in the midst of significant leadership changes as CEO Carlos Tavares attempts to turn around sliding sales and profit in North America ahead of his planned 2026 departure.

Tavares indicated earlier this year he was ready to axe any of its 14 brands that isn't performing. Feuell said Chrysler's positioning is strong.

"Chrysler has a very well-funded product and technology roadmap," she said.

(Reporting by Nora EckertEditing by Bill Berkrot)