Stellantis plans to invest $613M to reopen Belvidere Assembly Plant for 2 new Jeep vehicles

By Kevin Haas
Rock River Current
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BELVIDERE — Stellantis announced on Tuesday its plans to reopen the Belvidere Assembly Plant to produce two new Jeep vehicles starting in 2027.

The automaker said it will invest approximately $613 million to reopen the plant and expand production of the Jeep Cherokee and Jeep Compass. Initial production is expected to launch in 2027, and the work is expected to create approximately 3,300 jobs in Belvidere, the company said.

Stellantis said the work in Belvidere is part of its goal to expand U.S. production by 50% with five new vehicle launches and 19 product actions over the next four years, adding 5,000 jobs combined at plants in Illinois, Ohio, Michigan and Indiana.

The $13 billion investment is the largest in the company’s 100-year history.

“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 a news release. “As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings and giving them the freedom to choose the products they want and love.”

There’s no set timeline for work to begin to retool the Belvidere factory.

The Belvidere plant has been idle since February 2023, leading to roughly 1,200 workers being laid off. The UAW negotiated that year for the Belvidere plant to reopen as part of its new labor contract with the company.

Initially, the plan called for production of a midsize truck to start in Belvidere in 2027 with an EV battery plant coming in 2028. However, the company backed off plans for the EV battery plant and a Mopar Mega Hub.

The midsize truck that was initially expected to be produced in Belvidere will now be made at the Toledo Assembly Complex in Ohio, Stellantis said. It will be made along with Jeep Wrangler and Jeep Gladiator. The $400 million investment in Ohio is expected to create 900 jobs there, with the launch coming in 2028.

Local lawmakers, who worked to incentivize Stellantis to reopen in Belvidere, are celebrating Tuesday’s announcement.

“I’m truly grateful to all of the UAW workers, UAW leadership and Governor JB Pritzker whose dedication and teamwork made this victory possible. Their commitment has secured a brighter future for Belvidere and the countless families who depend on this plant,” state Rep. Dave Vella said in a news release. “Belvidere has long been a place where world-class vehicles roll out onto the roads of America. That tradition, that craftsmanship, is part of who we are. And now, the legacy continues.”

State lawmakers previously approved the Reimagining Energy and Vehicles Illinois Program to offer tax credits and other incentives to automakers who invest in electric or hybrid vehicles.

Gov. JB Pritzker said Tuesday that the Department of Commerce and Economic Opportunity has continued to work closely with Stellantis to develop an incentive package to reopen the facility and re-hire autoworkers. He said the DCEO and the company are working to finalize an incentive package.

“This investment will anchor long-term economic growth, support local communities, and provide opportunities for workers and families who have historically been left behind,” Pritzker said Tuesday in a statement. “We’ve worked closely with Stellantis and local partners, like the United Auto Workers (UAW), to ensure this investment delivers real benefits to Illinois, including strong jobs, thriving communities, and a strengthened economy. Illinois is proving that when we partner with industry and invest in our people, we can lead the nation in innovation, economic growth, and high-quality manufacturing jobs.”

State Sen. Steve Stadelman said the announcement was a big win for the local economy and workers.

“It took a team effort — including the UAW and state and local governments — to incentivize the automaker to reopen the Belvidere Assembly plant,” he said.

Meanwhile, Stellantis plans to develop an all-new range-extended EV and internal combustion engine large SUV at the Warren Truck Assembly Plant in Michigan in 2028. That $100 million retool is expected to go online in 2028.

The company also expects to invest $130 million in the Detroit Assembly Complex–Jefferson for production of the next-generation Dodge Durango. Production is anticipated to launch in 2029.

Stellantis previously announced plans to produce an all-new four-cylinder engine GMET4 EVO at its Kokomo facilities in Indiana. It confirmed that commitment on Tuesday.

“Accelerating growth in the U.S. has been a top priority since my first day,” Filosa said in the news release. “Success in America is not just good for Stellantis in the U.S. — it makes us stronger everywhere.”