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Stellantis Announces $388 Million Investment In Metro Detroit Megahub To Improve Mopar Parts Distribution Efficiency
Stellantis has announced a $388 million investment to establish a Metro Detroit Megahub in Van Buren Township, Michigan. This facility aims to enhance the efficiency and sustainability of its Mopar service parts distribution network. Scheduled for completion in 2027, the hub will incorporate advanced technology, including AutoStore systems, to create a modern and safe working environment for employees.
The AutoStore system employs compact robots that move along tracks above a dense grid of storage bins. These robots retrieve parts and deliver them to workstations where employees handle packing and processing for final shipments. This automation boosts order speed and accuracy, optimizes storage, and accelerates delivery times for customers and dealers.
Darren Bradshaw, senior vice president and head of Mopar North America, stated, "Our customers count on us to deliver the right part, at the right time, every time." He added that the Metro Detroit Megahub is designed to build a faster, smarter, and more reliable parts distribution network prioritizing customer needs. The investment underscores Stellantis' commitment to innovation, sustainability, and operational excellence while creating a high-tech workplace for employees.
The workforce for this new hub will include employees from existing locations in Center Line, Warren Sherwood, Milwaukee PDCs, and Marysville. Approximately 488 UAW-represented workers will transition to this new facility. Employees from Marysville will move to Warren and Warren Sherwood PDC locations until full integration into the Megahub is complete.
As part of its consolidation strategy, Stellantis recently sold its Michigan parts distribution centers in Center Line and Marysville as well as one in Milwaukee. Operations at these sites will continue under a sale-leaseback agreement until the new facilities are ready. This move aligns with Stellantis' long-term plan to modernize its service parts distribution network for improved efficiency.
This investment builds upon Stellantis' 2023 UAW contract agreements which have already seen nearly $120 million invested in strengthening parts operations. This includes a new facility in East Fishkill, New York, and enhancements to existing PDCs. The latest commitment further emphasizes Stellantis' dedication to advancing its distribution network.
Mopar's Legacy
Mopar is globally recognized as Stellantis' brand for genuine parts and accessories. Originating in 1937 as an antifreeze product line name combining "MOtor" and "PARts," Mopar has evolved over 85 years into a symbol of vehicle care and performance enhancement worldwide. It gained prominence during the 1960s muscle-car era with performance parts enhancing speed for both road use and racing.
Today Mopar integrates service parts with customer-care operations enhancing support worldwide. For more information on Mopar visit their website or blog where they share updates on their services.
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