As Belvidere plant prepares to idle, Stellantis announces $155M investment for EVs in Indiana

By Kevin Haas
Rock River Current
Get our mobile app

Stellantis said today that it will invest $155 million at three Kokomo, Indiana, plants to produce new modules that will power future electric vehicles assembled in North America.

The company’s announcement coincides with the final day of operations at the Belvidere Assembly Plant, which will go idle indefinitely today leading to the layoff of more than 1,200 workers.

It’s unclear how the announcement will affect the potential for electric vehicle production in Belvidere, something local and state lawmakers have been pushing for since 2021.

A spokeswoman for Stellantis said today there was nothing new to share on the company’s efforts to identify opportunities to repurpose the facility where Jeep Cherokees were made. She also said no decision has been made about where the next generation of Jeep Cherokees will be produced.

More news: Latest real estate data shows an inventory crunch continues, but prices are tapering off

The United Auto Workers said today that it will continue to demand that Stellantis puts a product in the Belvidere Assembly Plant, where UAW Local 1268 members have built vehicles since 1965.

“Stellantis’ ill-advised decision will have negative repercussions throughout the region and supplier network,” UAW President Ryan Curry said in a statement. “It will disrupt lives, uproot families, and leave communities struggling to find economic drivers to pay for schools, roads and other services.”

The union said via Facebook on Monday that it reached agreements through bargaining for a retirement incentive program, pre-retirement leave for those within two years of retirement and for a voluntary termination program.

“While the power of collective bargaining softens the blow for UAW Local 1268 members who work for Stellantis, we know that the options are much more limited for the supplier network which includes UAW members as well as the community at large,” UAW Vice President and Director of the National Stellantis Department Rich Boyer said in a statement. “This economic dislocation is a choice made by Stellantis to reap even higher profits. We will highlight their corporate greed to workers, community, taxpayers, and consumers.”

More news: Rockford economic development agency looks to reestablish itself as a go-to source for job growth

Stellantis said its commitment in Indiana supports the company’s goal of 50% battery electric sales in the U.S. by 2030. The electric vehicle modules built in Kokomo will be integrated into the frame and large platforms, which includes the Jeep 4×4.

“While we continue our successful transition to a decarbonized future in our European operations, we are now setting those same foundational elements for the North American market,” Carlos Tavares, Stellantis CEO, said in a statement. “By combining the benefits of the EDM with our new BEV-centric platforms and innovative battery technologies, we will offer our customers a variety of electric vehicles with unparalleled performance and range at more affordable prices.

“And with our in-house manufacturing capabilities and expertise, we will do it with greater flexibility and efficiency.”

More news: Half Price Books Outlet to close Rockford location this spring

Production in Kokomo is expected to start in the third quarter of 2024 after the facilities are retooled.

The company said the investment in Indiana retains 265 jobs.

“With more than 7,000 employees in Indiana, these investments will leverage the core manufacturing competencies of the local workforce in the areas of casting, machining and assembly, all of which will be needed even as the market transitions to an electrified future,” said Mark Stewart, Stellantis North America COO, in a news release. “The city of Kokomo and the state of Indiana have been great partners for many years. This community will continue to play a central role in our efforts to provide safe, clean and affordable mobility solutions for our customers long into the future.”

Stellantis says it has a goal to achieve carbon net zero by 2038.

This article is by Kevin Haas. Email him at [email protected] or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas.