Stellantis revealed a massive investment plan on Tuesday, detailing its intent to boost production facilities across four Midwest states, including the previously shuttered Belvidere plant in Illinois, as part of a broader effort to increase U.S. manufacturing output by 50% over the next four years.
Marking the largest single investment in the automaker’s century-long history, Stellantis will inject funds into plants in Illinois, Michigan, Indiana, and Ohio to support new vehicle launches, engine production, and overall manufacturing expansion.
According to the company’s announcement, the initiative will add about 5,000 jobs and involve a total of $13 billion in spending for research and development, supplier partnerships, and production operations.
A key component of this plan is the reopening of the Belvidere Assembly Plant. Stellantis will invest over $600 million to restart the facility and expand production of the Jeep Cherokee and Compass, with the initial launch expected in 2027. The move is projected to create around 3,300 new jobs.
Both the Jeep Cherokee and Compass are currently manufactured in Mexico, but moving production to Illinois will allow Stellantis to supply the U.S. market directly, while vehicles for international markets will continue to be built in Mexico, Stellantis spokesperson Jodi Tinson told.
In addition, Stellantis is investing $400 million to produce an all-new midsize truck, originally planned for Belvidere, at the Toledo Assembly Complex, where the Jeep Wrangler and Gladiator are currently built.
Further expansion includes a new large SUV, available in both EV and gas-powered versions, set to begin production in Warren, Michigan, in 2028. Stellantis will also build the next-generation Dodge Durango in Detroit and start producing an all-new four-cylinder engine in Kokomo, Indiana, 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,” said Antonio Filosa, Stellantis CEO and North America COO, in the announcement.
For Belvidere, this marks a significant turnaround. In February 2023, Stellantis “indefinitely” idled the plant, laying off its last 1,200 employees after halting Jeep Cherokee production amid declining demand. The facility, originally opened in 1965 under Chrysler, had been producing the Cherokee since 2017.
At its peak in 2019, the Belvidere plant employed over 5,000 workers across three shifts, but sales declines and corporate restructuring under Stellantis, formed by the merger of Fiat Chrysler Automobiles (FCA) and Peugeot in 2021, led to sharp cutbacks.
Originally, Stellantis had pledged nearly $5 billion in November 2023 to retool the Belvidere plant for a new midsize truck, build an adjacent EV battery factory, and establish a “megahub” parts distribution center as part of a deal to end the UAW’s six-week strike against the Big Three automakers. The project was expected to bring thousands of jobs back to the region.
However, plans have since shifted. The midsize truck will now be built in Toledo, while the megahub will move to Detroit, where Stellantis announced a new facility earlier this year.
“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 for the proposed EV battery plant in Belvidere, Tinson explained that slower-than-expected electric vehicle adoption has paused those plans. Stellantis currently operates EV battery facilities in Kokomo, Indiana, and Windsor, Ontario.
“At this time, there really is no need for any additional battery capacity,” Tinson said.
While the revived Belvidere plans are smaller in scope than the original proposal, Illinois Governor JB Pritzker praised Stellantis’s decision to reopen the plant and rehire thousands of workers.
“Today’s announcement from Stellantis is a major win for Illinois workers, our economy, and the future of American manufacturing,” Pritzker said in a statement. “Bringing back the Belvidere plant and creating 3,300 good-paying jobs demonstrates the skill, dedication, and productivity of Illinois’ workforce.”
The Illinois Department of Commerce and Economic Opportunity is finalizing an incentive package to help facilitate the reopening and rehiring process, according to the release.
The United Auto Workers (UAW) also attributed Stellantis’s decision to the Trump administration’s recent tariff policies aimed at boosting domestic manufacturing.
In April, former President Donald Trump imposed a 25% tariff on imported vehicles, a move that drew criticism from economists who warned it could raise prices and reduce sales.
Nonetheless, the UAW said the Stellantis investment proves those policies are achieving their intended effect.
“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 statement. “Their decision today proves that targeted auto tariffs can, in fact, bring back thousands of good union jobs to the U.S.”
