Stellantis may be leaving Michigan; Gov. Whitmer negotiating

Crain’s Detroit broke the story, reported again by Crain publication Automotive News, that Stellantis is talking with Governor Gretchen Whitmer about leaving Michigan, and the Chrysler Technology Center (CTC), behind. Stellantis refused to comment beyond pointing out that it has been in Michigan for more than 100 years (tacitly acknowledging that Maxwell Motors was the home of Chrysler before Chrysler Corporation was created) and that they appreciated the “partnership” with the governor and the state.

Stellantis has reportedly slashed testing of its own products in favor of outsourcing the work to Roush, though the company has modern facilities at the CTC and Chelsea Proving Grounds.

The Chrysler Technology Center and headquarters has 5.4 million square feet of space, but the number of white collar and UAW working there has diminished as Stellantis has been slashing its workforce. Around 1,500 UAW workers remain there along with an unknown number of managers, engineers, and professionals.

According to Automotive News, Governor Whitmer feels optimistic about the talks, which might, after all the rumors and talk, merely be a way for Stellantis to stop paying property taxes and perhaps gain some extortion grants. The state of Michigan is one of the few groups Stellantis had not been actively fighting with in the United States.

In the background, GM is planning to downsize its headquarters from the RenCen to a smaller development on Woodward Avenue, but at the same time has invested billions of dollars in its Warren technology center.

Stellantis’ stock prices continues to free-fall as investors appear to believe the company is already losing money, based on CEO Carlos Tavares’ comments and cost-reduction actions. Various reporters have reported that an upcoming board meeting will consider Tavares’ future as CEO, whether to keep the ten year evaluation period for the 14 nameplates, and whether the current plan to cost-cut into higher sales makes any sense. The company’s latest guidance still claims an 11% profit margin for 2025.