Stellantis has confirmed plans to invest $388 million in a highly automated Metro Detroit Megahub that will consolidate four Mopar parts distribution centers into one Van Buren Township site, raising union concerns about potential job losses despite the automaker’s assurances of compliance with its United Auto Workers (UAW) contract.
Announced on May 21, the new two-million-square-foot hub, set to open in 2027, will sit on a 350-acre property and will deploy an AutoStore automation to boost parts delivery speed, accuracy, and sustainability. According to the company, the facility is expected to support 488 UAW-represented jobs as it consolidates operations from existing locations in Center Line, Warren, and Milwaukee. Stellantis recently sold these sites under a sale-leaseback agreement to maintain support until the transition is complete.
However, UAW leadership expressed strong concerns that the consolidation could ultimately reduce the Mopar workforce. Kevin Gotinsky, UAW’s Stellantis department director, said the company is currently below the staffing levels agreed upon in the 2023 collective bargaining contract.
The 2023 contract between Stellantis and the UAW followed targeted strikes at parts facilities and resulted in the elimination of tiered wages at Mopar and wage increases of up to 76%. Mopar employment levels and job security became central issues during those negotiations.
The Megahub’s AutoStore system will use compact robots to retrieve items from a high-density grid and deliver them to employees at workstations for packing and shipment, enhancing operational efficiency and storage capacity. The automaker says the project reflects a long-term strategy to modernize its parts network while improving delivery speed and sustainability.
Due to the proposed wetland development, the Van Buren Township project still requires approval from the local planning commission and the Michigan Department of Environment, Great Lakes, and Energy. As of early May, Stellantis had not signed its proposed 20-year lease with joint venture developers Hillwood and Sterling Group.
The proposed Megahub is modeled after Stellantis’ new Mopar depot in East Fishkill, New York, and follows $120 million in recent Mopar investments. Stellantis says the new facility will create a modern, high-tech workplace that “delivers cleaner and more environmentally responsible operations.”
