$5B UAW, Stellantis deal could include construction of two more Belvidere plants
The tentative deal between United Auto Workers and Stellantis could end up meaning far more than previously imagined for the Belvidere Assembly Plant.
The company which produces Chrysler, Dodge, RAM and Jeep plans to invest $4.8 billion in Belvidere to not only reopen the existing facility there as a $100 million "megahub" parts distribution center but also is considering building a new assembly plant and a battery plant.
"The plan they're trying to push is a new assembly plant, a new battery plant and then refurbishing the the current plant, and making that the PDC (parts distribution center)," UAW Local 1268 President Matt Frantzen said. "So I don't know if they'll reduce the the footprint, you know, from the old assembly plant."
Frantzen said workers who have been displaced by cuts and layoffs in Belvidere will have the right to return to their home plant. When the company idled the Belvidere plant in February, 1,200 workers were laid off.
The company plans to refurbish the current plant as a parts distribution center starting next year, Frantzen said. It is planning to build a $3.2 billion "joint venture" battery production facility that would launch in 2028 in Belvidere. There also are plans to invest $1.5 billion to build a second new facility in Belvidere to produce as many as 100,000 units a year of an unnamed mid-size truck starting in 2027.
More: Stellantis, UAW agreement pledges new life for Belvidere plant. Here's what's next
State and local officials including the Northern Illinois Land Bank and Gov. JB Pritzker's office have secured the option to buy 300 acres west of the Belvidere Assembly Plant for construction of the new facilities. It is among a package of tax and cash incentives being used to attract investment from Stellantis in Belvidere.
UAW officials are also praising the "stand-up strike" for convincing Stellantis to invest in Belvidere, where workers have won awards for quality and dependability.
The UAW reached a tentative agreement that will mean wage increases of 25% and the return of cost of living adjustments in case of inflation. Local union members will learn more details about the proposal on Tuesday and could vote on whether to ratify as soon as Thursday. UAW members across the country are expected to vote on whether to ratify the agreement by Nov. 19.
"When we started these negotiations, we were committed to saving Belvidere," national union leaders said in a written statement. "We fought like hell to bring product back to this plant. We knew we needed a vehicle in Belvidere to bring back the Assembly Plant. What we didn’t know was how much more we would win."
Jeff Kolkey can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on Twitter @jeffkolkey
This article originally appeared on Rockford Register Star: Stellantis is planning to invest $4.8 billion in Belvidere
