(The Center Square) – Stellantis plans to build a $388 million parts distribution hub in Michigan as President Donald Trump pushes to re-shore domestic manufacturing through tariffs on foreign automakers.
Stellantis said it plans to develop a state-of-the-art Metro Detroit Megahub in Van Buren Township, Michigan, for the company’s Mopar service parts distribution network.
The company, which makes Chrysler, Dodge, Jeep and Ram, said the new facility will open in 2027 and include automated storage and retrieval systems.
“Our customers count on us to deliver the right part, at the right time, every time,” said Darren Bradshaw, senior vice president and head of Mopar North America. “With the Metro Detroit Megahub, we’re building a faster, smarter and more reliable parts distribution network that puts their needs first.”
The move is part of Stellantis’ consolidation strategy. Stellantis recently sold its Michigan parts distribution centers in Center Line and Marysville and one in Milwaukee, Wisconsin. The company said operations at those facilities will continue under a sale-leaseback agreement, providing support until the Metro Detroit Megahub and Warren Sherwood e-coat upfitting facility are complete.
The Metro Detroit Megahub will consist of employees from the Center Line, Warren, Warren Sherwood and Milwaukee locations, facilitating the transition for about 488 employees represented by the United Auto Workers.
In March, Trump imposed a 25% tariff on imported vehicles and a 25% tariff on imported auto parts. UAW, a union representing 400,000 active members, has cheered the auto tariffs. UAW said vehicle makers should take the tax hit rather than passing it to consumers. The union also encouraged Congress to pass a measure to make sure the companies don’t pass on added costs to consumers.
“As they shift their supply chains and investments to the U.S., auto companies that have enjoyed years of record profits should absorb the cost of these tariffs rather than passing them on to consumers, and the UAW would support legislative or regulatory action requiring them to do so,” the union said. “Workers must be held harmless during any disruption that accompanies the reshoring process, with financial support from the federal government if necessary.”
Economists, businesses and publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.
Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt.
A tariff is a tax on imported goods. The importer pays the tax and can either absorb the loss or pass the cost on to consumers through higher prices or some of both.
