Stellantis to build $388M parts distribution hub in Metro Detroit
Stellantis NV said Wednesday it will build a $388 million parts distribution hub in Van Buren Township, Michigan, that will consolidate several other Midwest facilities.
The new Mopar facility, called the Metro Detroit Megahub, is expected to open in 2027 and will staff up with about 488 United Auto Workers-represented employees.
The Chrysler, Dodge, Jeep and Ram maker said the project is part of a broader consolidation strategy for its parts distribution centers. It recently sold two of its Michigan parts facilities, in Center Line and Marysville, Michigan, as well as one in Milwaukee. Those facilities are continuing to operate under sale-leaseback agreements until the new Detroit hub opens.
Staff for the facility will come from the company's Mopar sites in Center Line, Warren and Warren Sherwood, as well as the Milwaukee location. Meanwhile, workers from the closing Marysville center will shift over to staff the Warren and Warren Sherwood parts centers. The Warren Sherwood location will be upgraded and is set to remain remain open long-term, Stellantis spokesperson Frank Matyok said; a company announcement said it will serve as an "e-coat upfitting facility."
The 2023 labor pact between Stellantis and the UAW laid out plans for several consolidated parts hubs, including this Detroit-area one. The automaker said it already has invested about $120 million to boost its parts and services operations since the the contract was finalized, including a new distribution site in East Fishkill, New York, and upgrades to existing Mopar sites.
"Our customers count on us to deliver the right part, at the right time, every time," Darren Bradshaw, senior vice president and head of Mopar North America, said in a statement. "With the Metro Detroit Megahub, we're building a faster, smarter and more reliable parts distribution network that puts their needs first."
The Detroit hub, like the New York state Mopar facility that has been open for several months, will be equipped with automated storage and retrieval systems to help pull parts for customers faster. Called AutoStore, it uses a series of small robots that move above a grid to storage bins to grab parts and deliver them to workers on the floor, where they are packaged and processed for shipping.
UAW spokespeople did not immediately respond to a request for comment.
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