Thousands of jobs could hinge on latest, best offer to save the Belvidere Assembly Plant

Illinois has submitted what could be its best offer to keep the Belvidere Assembly Plant operating and save what could be thousands of jobs.

U.S. Sen. Tammy Duckworth, D-Illinois, said during a visit to Rockford that her office is supporting local and state officials in their efforts to keep the Stellantis plant open in Belvidere where 5,000 people worked a few years ago. Although details are unavailable because talks are on-going, Duckworth said the state submitted its latest offer Friday night.

"We are trying to do everything we can to keep those guys here," said Duckworth, but added she is aiming for more. "Rockford is uniquely suited to start attracting some of these industries and that’s going to be my focus. So, yes, the Belvidere plant is important and we are going to pursue that, but I want us to be more than a one or two company town."

Ahead of its three-year labor agreement with the United Auto Workers expiring in September — an agreement which places a moratorium on plant closures through Sept. 14 — Stellantis has said it intends to "idle" the Belvidere plant starting Feb. 28. The plants remaining 1,200 employees would be laid off indefinitely.

The announcement came as sales of the Jeep Cherokee have fallen and as Stellantis and other auto manufacturers work to convert to their fleets to electric vehicles.

Stellantis has pledged to spend $35 billion through 2025 as it works to convert its European lineup of brands into electric vehicles and half its offerings in the United States. Among those planned electric offerings in the United States are two new fully electric, mid-size SUVs that are to begin production in 2024.

They are the Jeep Recon and the vehicle code named the Wagoneer S. No locations have been announced for the production of those vehicles.

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Stellantis has said all options are being considered for the future of the Belvidere plant and "that the company is working to identify other opportunities to repurpose the Belvidere facility."

Belvidere Mayor Clint Morris did not immediately return phone calls seeking comment. Gov. JB Pritzker's office did not respond to a request for comment.

Rockford Mayor Tom McNamara said officials have been "incredibly aggressive" in working to keep the Belvidere plant open and returning it to full capacity. The latest offer is one of several that have been submitted by local and state officials, some of which he said have been called "final and best" offers.

"There have been multiple final and best and final and best again and going back and forth with discussions," McNamara said. "Some positive news is there are discussions back and forth. One side hasn’t cut off communication. I think Sen. Duckworth has been incredibly attuned to it and already helped with some of the measures she has highly supported and advocated for the entire country, but specifically also for us."

Among those measures is the federal Inflation Reduction Act which includes tax incentives for companies like Stellantis to produce electric vehicles in the United States.

In addition, Illinois has approved a Reimaging Electric Vehicles Act which gives tax incentives for companies to convert factories for electric vehicle production. And the General Assembly has approved a $400 million "deal closing fund" that Gov. JB Pritzker could tap to provide grants or forgivable loans for establishing new vehicle lines in Belvidere that could mean thousands of jobs.

Duckworth said northern Illinois offers reliable and carbon neutral energy from the Byron Nuclear Plant, has plentiful clean water sources and superior access to transportation by road, air and rail. Duckworth said it also boasts a strong workforce that is said to be more productive than others in the country.

She said investments are needed to create railyards and prepare trade parks for international companies to consider expansion in the Rockford region.

"It's all part of what these guys, these corporations look at, and I think we are on the cusp of getting more," Duckworth said.

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 says it is keeping all options open for Belvidere plant