This could be the new strategy that Stellantis has devised for North America. This might be one of the reasons why Carlos Tavares visited the United States after the numerous problems that emerged following the first-half sales data, which triggered a chain reaction. The automotive Group sold its plant in Tipton, Indiana, following its closure in 2023. Now many are wondering if there will be other similar actions, given that Stellantis has other unused plants in the country at the moment.
Stellantis sells its Tipton plant to IRH Manufacturing, a company that produces solar panels
In 2014, Stellantis (then FCA) invested $162 million in the plant to produce 9-speed transmissions. The plant reached a production of five million transmissions in 2022, for vehicles like the Chrysler Pacifica Hybrid, when it employed over 850 workers. In mid-2023, Stellantis decided to close the plant after moving the production of the SI-EVT transmission to the Kokomo plant.
The Tipton Transmission Plant will now undergo a conversion and will be used for the production of solar panels, creating hundreds of jobs in Tipton county. IRH Manufacturing has stated that it wants to invest $500 million in the plant, of which $325 million for new machinery and $175 million for work on the structure. The plant’s conversion will begin in early 2025, while production will start in the last quarter of 2026.
The company plans to hire 700 employees and offer an average compensation of $45 per hour, equivalent to $93,600 annually, with starting wages from $32 per hour. While this is excellent news for the local economy, many are concerned. The main reason concerns the Belvidere plant, which was also closed in early 2023. Although last year the UAW union and Stellantis had reached an agreement for reopening, the automotive Group, following recent difficulties in the North American market, has postponed the reopening indefinitely. Many now fear that the fate of the Belvidere plant will be the same as the Tipton Transmission Plant.