Stellantis announced plans Tuesday to invest in production facilities across four Midwest states — including the idled Belvidere plant in Illinois — to roll out new lines and increase U.S. production by 50% over the next four years.
The largest single investment in the company’s 100-year history will gear up plants in Illinois, Michigan, Indiana and Ohio to build everything from new vehicle launches to engines, adding 5,000 jobs, Stellantis said in a news release. In total, the company will spend $13 billion on research and development, supplier costs and its manufacturing operations.
The automaker is investing more than $600 million to reopen the Belvidere plant and expand production of the Jeep Cherokee and Compass, with an initial launch expected in 2027. Restarting the plant is projected to create around 3,300 new jobs, Stellantis said.
Both vehicles are currently built in Mexico. The Belvidere plant will produce the Jeep Cherokee and Compass for the U.S. market, while the vehicles will continue to be built for other global markets in Mexico, Stellantis spokesperson Jodi Tinson told the Tribune.
Stellantis is also investing $400 million to build an all-new midsize truck “previously allocated to the Belvidere plant” at the Toledo Assembly Complex, where the Jeep Wrangler and Jeep Gladiator are produced, according to the release.
In addition, Stellantis announced plans to build an all-new EV and gas-powered large SUV in Warren, Michigan, beginning in 2028; a next-generation Dodge Durango in Detroit; and an all-new four-cylinder engine in Kokomo, Indiana, beginning next year.
“This investment in the U.S. — the single largest in the company’s history — will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” Antonio Filosa, Stellantis CEO and North America COO, said in the release.
The announcement Tuesday represents a new beginning — and a change of plans — for the Belvidere plant.
In February 2023, Stellantis “indefinitely” idled the assembly plant and laid off its last 1,200 workers after halting production of the Jeep Cherokee amid dwindling sales. The Belvidere plant, which opened in 1965 under the Chrysler banner, had been building the Cherokee SUV since 2017.
The plant had more than 5,000 workers on three shifts as recently as 2019, but demand for the Cherokee waned and downsizing accelerated under new owner Stellantis, which was formed by the merger of Fiat Chrysler Automobiles (FCA) and Peugeot of France in January 2021.
In November 2023, Stellantis committed to investing nearly $5 billion to retool the idled Belvidere plant for production of a new midsize truck, build an adjacent electric vehicle battery plant and create a “megahub” parts distribution center. Part of an agreement to end a six-week strike by the UAW against the Big Three automakers, the plan was expected to bring thousands of jobs back to Belvidere.
Instead, the midsize truck is going to Toledo, and the megahub will end up in Detroit, where a new facility was announced in May.
“We can confirm that there are no plans to move forward with the Belvidere megahub,” Tinson said. “We recently announced an investment in the Detroit megahub, so the previously planned Belvidere megahub will be folded into Detroit.”
As to the planned EV battery plant in Belvidere, Tinson said slowing demand for EV adoption has put that on hold, at least for now.
Stellantis has EV battery plants up and running in Kokomo and Windsor, Ontario.
“At this time, there really is no need for any additional battery capacity,” Tinson said.
While the plans to invest in the Belvidere plant are less ambitious than originally proposed, Gov. JB Pritzker lauded the news that Stellantis was restarting the plant and bringing thousands of jobs back to Illinois.
“Today’s announcement from Stellantis is a major win for Illinois workers, our economy, and the future of American manufacturing,” Pritzker said in a news release. “Bringing back the Belvidere plant and creating 3,300 good-paying jobs demonstrates the skill, dedication, and productivity of Illinois’ workforce.”
The Department of Commerce and Economic Opportunity is working to finalize an incentive package with Stellantis to reopen the facility and rehire workers, according to the release.
The UAW also gave credit to the Trump administration’s tariff policies, which were intended to stimulate domestic manufacturing. In April, Trump imposed a 25% tariff on all imported vehicles.
While economists warned the auto tariffs would raise car prices and tamp down sales, the UAW said the Stellantis announcement showed they achieved the Trump administration’s stated goal.
“A year ago, Stellantis was on a fast-track to moving their U.S. operations out of the country,” UAW President Shawn Fain said in a news release. “Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the U.S.”
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