On Tuesday, Jeep manufacturer Stellantis revealed intentions to add over 5,000 jobs in Michigan and other midwestern states by investing $13 billion in US manufacturing over the next four years.
The reopening of a factory in Belvidere, Illinois, which has been a point of contention between the company and the United Auto Workers since the plant closed in 2023, is one of the plans, which the firm said mark its largest US investment drive in its 100-year history.
In order to increase production of the Jeep Cherokee and Jeep Compass, Stellantis plans to reopen Belvidere with an investment of $600 million. Initial production is anticipated to begin in 2027.
The other investments add new models to existing Stellantis factories in Ohio, Michigan and Indiana. The vehicles listed in the plans include several internal combustion engine autos.
US emissions rules under former president Joe Biden had encouraged investments in electric vehicles as part of a move to address climate change.
However, the penalties for failing to meet the so-called CAFE fuel economy targets were lifted by President Donald Trump’s big tax and spending plan, which was adopted in July. This means that automakers may now manufacture and sell more cars with greater pollution levels in the US.
At a time when Trump has been imposing taxes on imported automobiles and parts, Stellantis’s ambitions are also intended to increase the company’s US volumes.
“This investment in the US — the single largest in the Company’s history — will drive our growth, strengthen our manufacturing footprint and bring more American jobs to the states we call home,” said Stellantis CEO Antonio Filosa.
“Accelerating growth in the US has been a top priority since my first day.”
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