Stellantis still on track to reopen Belvidere plant, as automakers adjust for tariffs
Stellantis is still on track to reopen its Belvidere assembly plant in 2027, despite President Donald Trump’s shifting tariff policies that pushed the automaker to temporarily lay off hundreds of employees and pause production at some plants.
“The launch timing for the plant has not changed,” Stellantis spokesperson Jodi Tinson said in a statement. “We’ll honor the timing indicated in the 2023 Collective Bargaining Agreement, so still expecting to launch in 2027.”
The reopening of the idle Belvidere plant was announced in January, alongside plans to build a new Dodge Durango at its Detroit Assembly Complex. In addition to Dodge, Stellantis owns brands such as Chrysler, Jeep and Ram.
But the economic landscape has drastically changed in recent months, with Stellantis temporarily halting operations at assembly plants in Canada and Mexico. It also temporarily laid off 900 workers at five U.S. plants. The production pauses came after Trump in early April announced 25% tariffs on auto imports and an additional 25% on certain car parts, effective May 3.
Tinson said the Windsor assembly plant in Ontario, Canada, is resuming operations this week on two shifts.
“As a result, more than half of the employees from Sterling Stamping, Indiana Transmission, Kokomo Transmission and Kokomo Casting who were put on temporary layoff when production was paused the week of April 7 also will return to work to support the Windsor operations,” she said.
Stellantis’ plant in Toluca, Mexico, is still “down through next week,” Tinson said. Stellantis had previously said the Toluca plant would be down until April 30.
Trump’s tariffs have some auto companies scrambling, since shifting production can be a difficult and long process. The president said last week he’s considering a pause on auto tariffs to give carmakers time to adjust their supply chains.
In Stellantis’ February earnings call, Chairman John Elkann was bullish on the year ahead. He said the automaker has been supportive of Trump’s efforts to boost domestic manufacturing and create new jobs.
“Overall, the challenges and the industry forces remain the same, but we have full confidence at Stellantis that what is ahead is probably among the most exciting periods for our industries, very much like the one the pioneers of our industry lived through,” Elkann said on the call.
The Belvidere plant, where the Jeep Cherokee was produced, shuttered in February 2023 and laid off 1,350 workers. But as part of Stellantis’ contract negotiations with the United Auto Workers, the company said it would reopen the plant. It’s expected about 1,500 UAW-represented employees will go back to work at the plant.
In July, the Energy Department announced Stellantis was awarded $335 million in federal funds to help fuel the reopening of the Belvidere plant, supplementing the nearly $5 billion investment the company agreed to in its terms with the UAW. It's unclear if the funds are in jeopardy under the new Trump administration.
UAW Local 1268 President Matt Frantzen said it’s likely tariff talks have “lit a fire” under Stellantis to progress on the Belvidere plant.
“They're moving in the direction that seems to be consistent with what they agreed to, as far as putting a product there. There's been no major overhaul or anything started yet,” Frantzen said. “We have no reason to believe that it's not going to happen.”
Trump has said that his tariff policy is meant to bolster American manufacturing, forcing companies to make goods in the U.S. instead of importing parts and products.
While there’s no word from Stellantis that tariffs could spur more production or jobs at the Belvidere plant, Frantzen is optimistic that tariffs could open up new discussions that ultimately lead to more jobs.
“That may be what we need in the automotive industry to start getting some of these products back in the country and create more jobs,” Frantzen said.