A Lot of Questions Remain About the Future of Belvidere Assembly

After months of uncertainty, Stellantis has confirmed plans to produce a new midsize Ram pickup truck at the Belvidere Assembly Plant in Illinois. Production is now slated for 2027, reversing an earlier delay that pushed the project to 2028 under former CEO Carlos Tavares. The move ensures the plant, idled since February 2023, will get a second chance to create jobs and contribute to the North American market.

The announcement came from Stellantis COO of North America Antonio Filosa, who wrote in an internal letter that the company would return to its original timeline for the midsize pickup truck. However, questions remain about Stellantis’ other commitments to Belvidere, including a battery facility and the promised Mopar Mega Hub.

Elkann Meets Trump Amid Tensions Over Production – 

Key to the decision may have been Stellantis Chairman John Elkann’s involvement. He reportedly met twice with President-elect Donald Trump in Washington, D.C., before his inauguration. Trump, vocal about returning manufacturing jobs to the U.S., threatened a 100% tariff on Stellantis vehicles built in Mexico. His hardline stance is said to have influenced Elkann’s commitment to U.S. production, ensuring that Belvidere would remain the chosen site for the truck.

Meanwhile, rumors about Dodge Durango production added to the intrigue. Initially, whispers pointed to the Durango moving to Windsor Assembly in Canada as Stellantis reevaluated its product strategies. However, those rumors were later revealed to involve potential relocation to Mexico—a move met with significant backlash. Ultimately, Stellantis confirmed that Durango production would remain in Detroit, alongside the Jeep® Grand Cherokee.

Union Pride in Securing Jobs – 

UAW President Shawn Fain celebrated the announcement, crediting the power of collective worker action. “This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” Fain said. “We’ve shown that we will do what it takes to protect the good union jobs that are the lifeblood of places like Belvidere, Detroit, Kokomo, and beyond.”

Belvidere’s nearly 5-million-square-foot facility has a rich history, producing around 12 million vehicles since its first car rolled off the line in 1965. Despite the optimism, the plant will require significant equipment updates before production begins.

Worker Concerns About Relying on a Single Product – 

Despite the optimism surrounding the announcement, some workers at Belvidere Assembly are voicing concerns about the plant’s reliance on a single product. They worry it could lead to issues similar to those faced during the Jeep Cherokee’s final years at the facility.

For much of its production life, the Jeep Cherokee was a strong performer in the compact SUV segment, but its appeal faded in the face of competition. Aging design and a shifting market saw sales plummet from over 200,000 units annually at its peak to fewer than 40,000 in 2022. Compounding these challenges, the plant struggled with severe semiconductor shortages in the wake of the COVID-19 pandemic. As the global chip crisis deepened, production stoppages became frequent, leaving workers uncertain about their future.

The decline left Belvidere with little work to sustain operations, ultimately leading to the plant’s idling in early 2023. Workers now hope Stellantis will commit to diversifying production at Belvidere, ensuring the midsize Ram truck isn’t the sole focus. This approach could safeguard against market fluctuations and prevent the plant from experiencing another downturn like it did with the Cherokee.

Unibody Design Hints at Ram’s New Direction – 

The midsize Ram truck is expected to feature a unibody design, diverging from the traditional body-on-frame (BoF) setups of competitors like the Ford Ranger and Toyota Tacoma. Hints from Stellantis’ EV Day 2021 presentation suggest it may use the STLA Large platform, which underpins other unibody products such as the Jeep Grand Cherokee.

While some enthusiasts may balk at the idea of a unibody truck, Ram emphasizes comfort, handling, fuel efficiency, and respectable towing and payload capabilities. Former Ram CEO Christine Feuell described the new truck as “affordable and adaptable” and noted its importance on a global scale. “This won’t be a niche vehicle—we’re designing it to compete globally, with North America as the primary focus,” Feuell told MotorTrend.

Challenges in a Shifting Market – 

Stellantis’ decision comes amid a broader shift in the automotive market, where electric vehicle (EV) sales have slowed, and hybrid models have gained popularity. The new midsize truck is reportedly to launch with both internal combustion engine (ICE) and EV variants, appealing to many buyers.

Stellantis’ pivot away from its Dare Forward 2030 strategy—focused on 100% EV sales in Europe and 50% in the U.S.—reflects the industry’s adaptation to evolving consumer demand. Competing automakers like Ford and GM have also scaled back their EV ambitions, leaning more heavily on hybrids as a more affordable and practical alternative.

The Mopar Mega Hub: A Critical Component in Limbo – 

One of the most anticipated projects tied to Belvidere’s revival was the Mopar Mega Hub, initially announced as part of Stellantis’ strategy to improve its North American parts distribution network. The Mega Hub was expected to centralize operations for Mopar parts distribution, streamlining the process of getting components to dealerships and service centers across the Midwest.

The facility would have been one of the largest of its kind, boasting advanced automation and robotics to handle high volumes of inventory efficiently. It was also expected to create hundreds of additional jobs, ranging from warehouse operations to administrative roles. Local officials hailed the project as a game-changer for Belvidere, complementing the assembly plant’s vehicle production and providing a much-needed economic boost to the area.

However, with Stellantis focusing its resources on reviving vehicle production at Belvidere, the Mopar Mega Hub’s future now appears uncertain. While Stellantis has not officially canceled the project, the lack of recent updates has raised concerns among local leaders and workers.

Should the Mega Hub move forward, it could serve as a strategic asset for Stellantis, reducing lead times for parts delivery and enhancing customer satisfaction. Additionally, the facility could play a key role in supporting the new midsize Ram pickup, particularly if demand spikes after its launch. The community is left wondering whether Stellantis will prioritize this initiative or shelve it in favor of other investments.

Missing Piece of the Puzzle: Battery Plant – 

During negotiations with the UAW, early discussions hinted that Belvidere could house a cutting-edge battery plant to support Stellantis’ North American EV strategy, particularly with the midsize Ram truck expected to launch with a fully electric variant.

However, those plans have yet to materialize, raising concerns about Stellantis’ long-term commitment to establishing a localized battery supply chain. While Stellantis has announced joint ventures for battery production facilities in Kokomo, Indiana, and Windsor, Ontario, no similar announcement has been made for Belvidere.

Batteries for the EV variant may come from Stellantis’ Kokomo, Indiana plant, as there’s been no confirmation of a battery facility in Belvidere. Additionally, once planned for the site, the Mopar Mega Hub appears to be on hold.