Stellantis last week announced plans to invest $388 million into a new state-of-the-art Metro Detroit Megahub in Van Buren Township, Mich. The facility, set to launch in 2027, will feature an automated storage and retrieval system, or ASRS, from AutoStore Holdings Ltd.
“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. The company said its ASRS can improve order speed and accuracy, maximize storage efficiency, and help accelerate delivery times for customers and dealers.
AutoStore marks U.S. milestone
Earlier this month, AutoStore surpassed 300 installations across North America. The milestone installation was at Medline’s new site in Aurora, Colo., with its longtime integration partner, Swisslog. Over a decade ago, Medline was AutoStore’s first North American customer.
Today, Medline operates more than 20 AutoStore systems across the U.S., deploying 1,900 robots to support high-throughput fulfillment and enable next-day delivery to 95% of its customers in the U.S.
Across North America, AutoStore’s 300 installations now move millions of products daily, with more than 21,000 robots in operation. The company isn’t just growing in one region. AutoStore recently said it has surpassed 1,100 installations across Europe, the Middle East, and Africa (EMEA).
About the AutoStore ASRS
Each AutoStore system is made up of five components:
- A controller, which acts as the brain of the system. This handles traffic control, tracks inventory, and acts as the command center of the ASRS. It delivers advanced access control for service personnel while planning and scheduling tasks.
- AutoStore’s robots drive, dig, collect, and deliver bins to workstations. They can work in large or small teams, and each robot is individually controlled. This ensures that there is no single point of failure.
- The grid provides a structure for the entire system. The aluminum framework holds the bins in place while also being the railways for the robots. All that’s needed for installation is a flat floor, the company said.
- AutoStore bins are stacked high and tight within the grid. The bins are available in three different sizes. To accommodate multiple product categories within one bin, it can be subdivided into different compartments.
- The final part of the system is the workstations, or ports. The robots deliver bins to these ports for employees to fulfill orders or restock items. AutoStore offers seven different ports to meet a range of customer needs.
Stellantis further invests in U.S. workforce
As part of its broader consolidation strategy, Stellantis recently sold its Michigan parts distribution centers (PDC) in Center Line, Marysville, and Milwaukee, Wisc. The automaker will continue operations at these facilities under a sale-leaseback agreement. This will provide 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.
Stellantis said the moves align with its 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, N.Y., and enhancements to existing PDCs.
Stellantis said this latest commitment further underscores its dedication to advancing its distribution network and supporting its U.S. workforce.
