Stellantis, a major American automaker, has announced plans to increase its vehicle production in the United States following a meeting between the company's chairman and President Donald Trump. In an email to employees, Stellantis expressed its commitment to strengthening its manufacturing presence in the U.S. and supporting its American workforce.
The company, known for brands such as Jeep, Dodge, and Chrysler, revealed that it will be producing a mid-size pickup truck in Belvidere, Illinois. This decision will see the reopening of a plant that was previously closed, with 1,500 United Auto Workers (UAW) employees set to return to work as a result of the new agreement.
Additionally, Stellantis announced plans to manufacture the next generation Dodge Durango at its Detroit Assembly Complex, invest in the production of Jeep Wrangler and Jeep Gladiator at the Toledo Assembly Complex, and make further investments in its Kokomo, Indiana plant.
These developments come in response to President Trump's proposed 25% tariffs on Mexico and Canada, scheduled to take effect in the near future. Tariffs often prompt companies to increase domestic production to avoid higher costs associated with imports.
Notably, the UAW had raised concerns about the pace of investment in the Belvidere plant, leading to the threat of a potential strike. Stellantis' decision to expand its manufacturing operations in the U.S. may have been a strategic move to address these concerns and maintain a positive relationship with the union.
