Stellantis continues to be on observe to reopen its Belvidere meeting plant in 2027, regardless of President Donald Trump’s shifting tariff insurance policies that pushed the automaker to quickly lay off a whole bunch of workers and pause manufacturing at some crops.
“The launch timing for the plant has not modified,” Stellantis spokesperson Jodi Tinson stated in a press release. “We’ll honor the timing indicated within the 2023 Collective Bargaining Settlement, so nonetheless anticipating to launch in 2027.”
The reopening of the idle Belvidere plant was introduced in January, alongside plans to construct a brand new Dodge Durango at its Detroit Meeting Advanced. Along with Dodge, Stellantis owns manufacturers corresponding to Chrysler, Jeep and Ram.
However the financial panorama has drastically modified in current months, with Stellantis quickly halting operations at meeting crops in Canada and Mexico. It additionally quickly laid off 900 employees at 5 U.S. crops. The manufacturing pauses got here after Trump in early April introduced 25% tariffs on auto imports and a further 25% on sure automotive elements, efficient Might 3.
Tinson stated the Windsor meeting plant in Ontario, Canada, is resuming operations this week on two shifts.
“In consequence, greater than half of the staff from Sterling Stamping, Indiana Transmission, Kokomo Transmission and Kokomo Casting who had been placed on short-term layoff when manufacturing was paused the week of April 7 additionally will return to work to assist the Windsor operations,” she stated.
Stellantis’ plant in Toluca, Mexico, continues to be “down by means of subsequent week,” Tinson stated. Stellantis had beforehand stated the Toluca plant could be down till April 30.
Trump’s tariffs have some auto corporations scrambling, since shifting manufacturing could be a tough and lengthy course of. The president stated final week he’s contemplating a pause on auto tariffs to provide carmakers time to regulate their provide chains.
In Stellantis’ February earnings name, Chairman John Elkann was bullish on the yr forward. He stated the automaker has been supportive of Trump’s efforts to spice up home manufacturing and create new jobs.
“General, the challenges and the business forces stay the identical, however we’ve full confidence at Stellantis that what’s forward might be among the many most enjoyable intervals for our industries, very very like the one the pioneers of our business lived by means of,” Elkann stated on the decision.
The Belvidere plant, the place the Jeep Cherokee was produced, shuttered in February 2023 and laid off 1,350 employees. However as a part of Stellantis’ contract negotiations with the United Auto Employees, the corporate stated it could reopen the plant. It’s anticipated about 1,500 UAW-represented workers will return to work on the plant.
In July, the Vitality Division introduced Stellantis was awarded $335 million in federal funds to assist gas the reopening of the Belvidere plant, supplementing the practically $5 billion funding the corporate agreed to in its phrases with the UAW. It’s unclear if the funds are in jeopardy below the brand new Trump administration.
UAW Native 1268 President Matt Frantzen stated it’s doubtless tariff talks have “lit a fireplace” below Stellantis to progress on the Belvidere plant.
“They’re transferring within the path that appears to be in keeping with what they agreed to, so far as placing a product there. There’s been no main overhaul or something began but,” Frantzen stated. “We now have no purpose to consider that it’s not going to occur.”
Trump has stated that his tariff coverage is supposed to bolster American manufacturing, forcing corporations to make items within the U.S. as a substitute of importing elements and merchandise.
Whereas there’s no phrase from Stellantis that tariffs may spur extra manufacturing or jobs on the Belvidere plant, Frantzen is optimistic that tariffs may open up new discussions that finally result in extra jobs.
“Which may be what we want within the automotive business to begin getting a few of these merchandise again within the nation and create extra jobs,” Frantzen stated.
