Stellantis has decided to postpone the reopening of the Belvidere plant, without providing further information. Amid the storm with UAW, the decision that has put relations in crisis had been in the air for some time. The postponement by Stellantis was decided to “ensure the future competitiveness and sustainability of the company,” according to an official statement. However, workers are now worried that the plant, which was supposed to be reopened following the agreement reached with UAW last year, may never reopen.
Stellantis postpones reopening of Belvidere plant: UAW fears it may never reopen
Stellantis, to cite other promises that are making UAW very angry, had announced at the end of 2023 the intention to build a new $3.2 billion battery production plant, also in Belvidere. In addition to this, a $1.5 billion investment was discussed for the conversion of the existing factory, where Jeep Cherokee production stopped with the last model off the line.
Production in Belvidere, therefore, remains temporarily suspended, a situation that has been ongoing since February 2023. From 2027, the goal would be to produce between 80,000 and 100,000 mid-size electric pickup trucks per year, but this too is at the center of many doubts and denials. In July 2024, the American government committed to supporting the project with $334 million in funding. However, shortly after, Stellantis announced a delay in the plant’s opening.
The new reopening date has not yet been announced, and the UAW union fears that the Belvidere plant may never reopen. UAW President Shawn Fain has expressed concerns. “They say they want to ‘delay’ the reopening, but their real intention is to postpone until they can cite ‘market conditions’ and maybe never reopen the plant.” The contract between the union and Stellantis, after all, is valid until mid-2028.
Stellantis, meanwhile, rejects these fears. “It is crucial that all investments align with market conditions and our ability to respond to diverse consumer needs.” Plans for Belvidere will be delayed, but the company reiterates its commitment to moving forward with the project. They also hope for constructive dialogue with the union.
It’s unclear how plans for Belvidere will evolve, or if Stellantis will proceed with significant reductions to the project. While the UAW union communicates all its fears about this, Stellantis maintains a rather “reserved” attitude, leaving little room for real reassurances.