Stellantis to reopen Belvidere plant, build new pickup truck and dodge durango, investing $5bn in US production amid strategic reshuffle

Stellantis commits $5bn to US auto manufacturing, reopening the Belvidere plant, building a midsize pickup, and producing the next-generation Dodge Durango. With 1,500 jobs to be restored, the move signals a strategic reset amid challenges and a reshuffling of priorities.

Stellantis has confirmed it will reopen its long-idled assembly plant in Belvidere, Illinois, marking a significant milestone for the automotive giant as it charts a path forward with a $5bn investment in US manufacturing. Following the carmaker’s announcement, however, the facility is now actively preparing to produce a new midsize pickup truck; a project that will bring 1,500 United Auto Workers (UAW) members back to work.

The development is part of a broader strategy aimed at revitalising Stellantis’ operations, growing market share, and aiming for greater dominance in the US automotive industry.

The announcement follows months of uncertainty over the plant’s future. Once a hub for Jeep Cherokee production, the Belvidere facility employed 5,000 workers at its peak but has remained dormant since February 2023. The transformation of the site into a production hub for midsize trucks is now expected to begin, with production slated to start in 2027, according to the UAW.

In a memo to members, UAW President Shawn Fain celebrated the outcome as a victory for collective bargaining. “This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” Fain stated. “We’ve shown that we will do what it takes to protect the good union jobs that are the lifeblood of places like Belvidere, Detroit, Kokomo and beyond.”

The revival of Belvidere has been acknowledged as a major economic win for Illinois Governor JB Pritzker, whose administration has also attracted EV battery manufacturer Gotion to Manteno. The plant’s reopening is expected to be a cornerstone of Stellantis’ plans to strengthen its US operations.

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Beyond Belvidere, Stellantis has outlined a series of strategic investments across its American manufacturing network. The next-generation Dodge Durango will now be produced at the Detroit Assembly Complex, while facilities in Toledo, Ohio, will see upgrades to support Jeep Wrangler and Jeep Gladiator production, as well as new technologies at the Toledo Machining Plant. Additionally, the company will invest in its Kokomo, Indiana, facilities to produce the GMET4 EVO engine, a critical powertrain in its future vehicle lineup.

With Trump now in the Whitehouse, and the expectation of his potentially negative impact on North American automotive production, Stellantis Chairman, John Elkann, met with the US president to secure Stellantis’ future.

In an email to staff obtained by the Financial Times, Antonio Filosa, head of US operations at Stellantis stated that the investments would be directed towards several of the company’s manufacturing facilities nationwide.

Memo to Stellantis employees, where the company elaborated on its vision:

Dear Colleagues,

I wanted you to know that last week, in advance of the Inauguration, our Chairman John Elkann met with President Trump to share our enthusiasm for his strong commitment to the United States auto industry and all that this means for American jobs and the broader economy.

John told the President that building on our proud, more than 100-year history in the US, we plan to continue that legacy by further strengthening our US manufacturing footprint and providing stability for our great American workforce. Our plans, focused on increasing market share and growing sales volume, entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the US. Today we can confirm a number of specific actions in the rollout of that plan:

First, a new mid-size pickup truck will be produced in Belvidere, returning approximately 1,500 UAW-represented employees to work there.
Second, we will now move forward with plans to build the next-generation Dodge Durango at our Detroit Assembly Complex.
Third, we will invest in Toledo, including additional technologies and strong product actions for Jeep Wrangler and Jeep Gladiator in our Toledo Assembly Complex, and more components critical to our production in our Toledo Machining Plant.
Fourth, we plan to make additional investments in our Kokomo facilities to produce the GMET4 EVO engine, ensuring that the US will be the manufacturing home of this strategic powertrain.

These actions are part of our commitment to invest in our US operations to grow our auto production and manufacturing here. We have shared with the UAW all these actions and our desire to work together to strengthen our great company. I look forward to sharing more information about our overall plans with you soon, as well as with our incredible network of dealers, who I will be seeing later this week in New Orleans at the 2025 NADA Show. In the meantime, thank you all for your outstanding commitment to these efforts and to our company’s future.

Antonio

The ambitious plans come at a time when Stellantis is undergoing a period of significant change. Sales have slowed, profits have declined, and the departure of former CEO Carlos Tavares has triggered a management reshuffle. Elkann has been active in addressing these challenges, including recent engagements with internaitonal political leaders from the US, Italy, and France to secure support for the company’s strategy.

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Elkman’s political engagements to secure Stellantis’ production future

United States: Elkann may have engaged with American political leaders to secure support for Stellantis’ electric vehicle (EV) production initiatives, including accessing subsidies and incentives under the Inflation Reduction Act (IRA).
Italy: Interactions likely focused on securing government backing for Stellantis’ operations within its home market, including potential investment in EV infrastructure or maintaining industrial competitiveness.
France: Engagements with French leaders could be tied to policies promoting the transition to EVs, leveraging France’s focus on sustainability, and supporting local production or R&D projects.

Such discussions aim to align Stellantis’ strategies with national policies, ensure access to government support, and address regional production goals.

Despite its challenges, Stellantis is optimistic about its future in the US. “Our plans, focused on increasing market share and growing sales volume, entail a multibillion-dollar investment in our people, great products, and innovative technology,” Elkann stated in the memo.