Stellantis is building a $388 million automotive parts “Megahub” in Metro Detroit, the automaker announced in a May 21 press release.
The new facility in Van Buren Township is set to be operational by 2027, “further advancing the efficiency and sustainability” of Stellantis’ Mopar service parts distribution network, according to the release. The facility will be key in the automaker’s “long-term plan to modernize and centralize its service parts distribution network”, the company said.
The 2023 collective bargaining agreement between Stellantis and the United Auto Workers included the automaker’s plan to overhaul its parts distribution centers.
Consolidation is a major component of Stellantis’ plan. The automaker recently sold its Michigan sites in Center Line and Marysville as well as its Milwaukee, Wisconsin parts distribution facility. The centers will continue operating under a sale-leaseback agreement until the Metro Detroit Megahub opens, according to the release.
Meanwhile, the Warren Sherwood center will be revamped as an e-coat upfitting facility, and Marysville workers will transition to Stellantis’ two other nearby Warren facilities until construction of the Metro Detroit Megahub is complete.
The Metro Detroit Megahub will be staffed by 488 UAW-represented workers from the Center Line, Warren, Warren Sherwood and Milwaukee parts distribution center locations, the company said.
The Metro Detroit Megahub will utilize “AutoStore” technology, which Stellantis introduced in April at its new East Fishkill, New York parts distribution center, which itself a merger of the former Tappan, New York and Boston parts facilities. The AutoStore system automates parts storage and retrieval by relegating these tasks to robots. Humans then process the parts for shipment.
“With the Metro Detroit Megahub, we’re building a faster, smarter and more reliable parts distribution network that puts [customer] needs first,” Darren Bradshaw, senior vice president and head of Mopar North America, said in a statement. “This investment reflects our commitment to innovation, sustainability and operational excellence, while also creating a modern, high-tech workplace for our employees.”
