Jeep and Chrysler maker Stellantis NV on Friday confirmed it will delay the relaunch of production at its Illinois assembly plant that’s sat idled since 2023, but it’s increasing its investment there ahead of launching the next-generation Jeep Cherokee SUV.
Stellantis in October had said it would restart production in 2027 at Belvidere Assembly Plant almost an hour-and-a-half northwest of Chicago. Under the new plan, pilot production of the Cherokee will begin in the first half of 2028 with the launch of retail production expected in the second half of 2029. The transatlantic automaker plans to invest more than $800 million in the facility, up from $600 million shared in October.
The announcement means Belvidere’s idling will end in 2028, spokesperson Jodi Tinson said. Stellantis’ October announcement also said Belvidere will build the Jeep Compass. There were no updates on Thursday on that model.
Stellantis also said the Cherokee will be the first U.S. vehicle assembled on its new STLA One platform, a flexible, modular design focused on simplifying vehicle development across more than 30 models globally by 2035. With that platform, Belvidere will produce all powertrain variants on two shifts.
“Launching the next-generation Cherokee on STLA One allows us to deliver a more competitive product whileleveraging the strength of our U.S. manufacturing operations,” Antonio Filosa, Stellantis CEO and North Americachief operating officer, said in a statement. “Selecting the right product architecture, timing and execution path supports our growth strategy and creates the best long-term outcome and stability for our employees, customers and stakeholders.”
Through the delay in the restart, Stellantis said it will continue with supplemental unemployment benefits and health care for employees laid off. It also will increase the SUB pay to reflect wage increases in the record 2023 contract with the United Auto Workers, address future pension credits for employees on layoff and offer temporary relocation opportunities.
Preparation work at Belvidere is underway, the company added. Stellantis has spent more than $60 million through July on projects across stamping, body, paint and general assembly focused on assessing, upgrading and preparing infrastructure, equipment and systems to support the plant’s restart.
Local UAW leaders had expressed frustrations earlier this year about a likely delay in the plant that built the previous-generation Cherokee until early 2023, resulting in thousands of workers being laid off or transferring to others plants. A presentation to union members late last year showed Compass production starting by December 2027 with the Cherokee rolling off the line by November 2028. It called for two work shifts initially, and potential production volumes of more than 100,000 vehicles annually for both models.
“I know this is not the news anyone wanted to hear, and I share your frustration,” Rich Boyer, UAW vice president and head of the Stellantis Department, said in a letter to members. “The men and women of Belvidere have waited long enough and have already sacrificed too much. We have made it clear to the Company that our members deserve certainty, accountability, and a commitment to follow through on the promises that have been made.”
Plans to build the Cherokee and Compass at the factory were included in a larger $13 billion Stellantis investment announcement into U.S. manufacturing and other areas. Originally, Belvidere was supposed to reopen and produce a midsize pickup, but that vehicle instead will be made at the Toledo Assembly Complex in Ohio.
Jeep’s all-new Cherokee launched for the 2026 model year at the Toluca Assembly Plant in Mexico, which also builds the smaller Compass. An all-new version of Compass was originally supposed to be built in Brampton, Ontario, starting this year. But those plans were canceled, to the frustration of Canadian officials.
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This article originally appeared on The Detroit News: Stellantis delays Illinois plant restart, but increases investment
Reporting by Breana Noble, The Detroit News / The Detroit News
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By Breana Noble, The Detroit News | USA TODAY Network
