Stellantis Announces $388 Million Investment in Metro Detroit Megahub to Enhance Service Parts Distribution Efficiency for Mopar
Auburn Hills, Mich. – Stellantis today announced a $388 million investment to develop a state-of-the-art Metro Detroit Megahub in Van Buren Township, Michigan, further advancing the efficiency and sustainability of its Mopar service parts distribution network.
The new facility, set to launch in 2027, will feature cutting-edge technology, including AutoStore automated storage and retrieval systems, ensuring a modern and safe working environment for employees.
“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. This investment reflects our commitment to innovation, sustainability and operational excellence, while also creating a modern, high-tech workplace for our employees.”
The AutoStore system uses compact robots that navigate tracks above a high-density grid of storage bins to retrieve parts and deliver them to workstations, where employees pack and process final shipments. This advanced automation improves order speed and accuracy, maximizes storage efficiency and helps accelerate delivery times for customers and dealers.
As part of its broader consolidation strategy, Stellantis recently sold its Michigan parts distribution centers (PDC) in Center Line and Marysville, as well as one in Milwaukee, Wisconsin. Operations at these facilities will continue under a sale-leaseback agreement, providing essential support until the Metro Detroit Megahub and Warren Sherwood e-coat upfitting facility are complete.
The workforce for the Metro Detroit Megahub will consist of employees from the Center Line, Warren, Warren Sherwood and Milwaukee PDC locations, facilitating the transition for approximately 488 UAW-represented employees.
Accordingly, the workforce from the Marysville location will transition to the Warren and Warren Sherwood PDC locations where they will operate until the full integration into the Megahub and the Warren Sherwood facility is final. The move aligns with Stellantis’ long-term plan to modernize and centralize its service parts distribution network for improved efficiency and sustainability.
The investment in the Metro Detroit Megahub builds upon Stellantis’ 2023 UAW contract agreements, which have already seen nearly $120 million invested to strengthen parts and services operations, including a new facility in East Fishkill, New York, and enhancements to existing PDCs. This latest commitment further underscores Stellantis’ dedication to advancing its distribution network and supporting its U.S. workforce.
