Stellantis ups investment to $800 million at idled Belvidere plant to build new Jeep Cherokee in 2029
Stellantis announced Friday it is upping its investment in the idled Belvidere plant to $800 million, retooling it with its latest manufacturing platform to build the next generation Jeep Cherokee.
The Belvidere plant will be the first to employ the STLA One platform, the automaker’s new modular manufacturing design, which is expected to roll out across more than 30 models globally by 2035, Stellantis said. Jeep Cherokee production at Belvidere is expected to begin in 2029.
“Launching the next-generation Cherokee on STLA One allows us to deliver a more competitive product while leveraging the strength of our U.S. manufacturing operations,” Antonio Filosa, Stellantis CEO and North America COO said in a news release.
As part of the new manufacturing platform, Stellantis is increasing its investment in the Belvidere plant by $200 million. In October, the automaker announced a $600 million investment to reopen the plant and expand production of the Jeep Cherokee and Compass, with an initial launch in 2027.
Both vehicles are currently built in Mexico.
Friday’s announcement pushed back pilot production of the new Cherokee to the first half of 2028, with retail production targeted to launch in the second half of 2029. The automaker did not specify the second vehicle to be built or the number of jobs created at Belvidere. A Stellantis spokesperson declined further comment.
Stellantis previously said restarting the plant was projected to create around 3,300 new jobs in the small river town near Rockford.
The automaker has already invested more than $60 million through July in getting the Belvidere plant ready to relaunch production on the new manufacturing platform. The plant will be capable of producing all powertrain variants on two shifts, Stellantis said.
Gov. JB Pritzker released a statement Friday hailing the increased investment to restart one of the state’s three major auto plants.
“Today’s announcement builds on Stellantis’ commitment to bring thousands of good-paying jobs back to Belvidere and represents another major vote of confidence in Illinois workers and the future of Illinois manufacturing,” Pritzker said. “By increasing its investment to more than $800 million and selecting Belvidere to launch its new STLA One platform in the United States, Stellantis is positioning Illinois at the center of its next generation of automotive innovation.”
In February 2023, Stellantis “indefinitely” idled the Belvidere plant and laid off its last 1,200 workers after halting production of the Jeep Cherokee amid dwindling sales. The 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 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 as part of an agreement to end a six-week strike by the UAW against the Big Three automakers. While those plans have since been downsized, revised and delayed, Stellantis reiterated its commitment Friday to support Belvidere-area auto employees waiting to get back to work.
The automaker said it intends to continue with supplemental unemployment benefits and healthcare, increase the benefits to reflect the 2023 contract wage increases, address future pension credits for employees on layoff and offer temporary relocation opportunities for Belvidere employees.
rchannick@chicagotribune.com