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.
Stellantis (NYSE:) is in the midst of significant leadership changes as CEO Carlos Tavares attempts to turn around its 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.
