Stellantis’ Investment in EV Production and Plant Upgrades Under UAW Deal

UAW’s tentative agreement with Stellantis details investments in American plants for upcoming electric and hybrid models, including the next-generation Jeep Wrangler.

• Stellantis is investing $1.5 billion in the Belvidere plant to produce mid-size trucks, potentially including a Ram Dakota successor.

• The Toledo Assembly Complex is set to receive the same investment amount for the production of hybrid and electric Jeep Wranglers and Gladiators.

• Warren Truck Plant will be allocated $600 million for the production of the Wagoneer and Grand Wagoneer models, introducing hybrid variants in 2025 and electric variants by 2027.

According to Car Scoops, the United Auto Workers (UAW) union has disclosed some pivotal aspects of its provisional contract with Stellantis, signifying substantial advancements in vehicle production and electrification. Central to the agreement is a substantial $1.5 billion investment intended for the revival of the previously dormant Belvidere assembly plant. This financial infusion is slated for 2027, with the aim of manufacturing mid-size pickup trucks, including a potential successor to the Ram Dakota, with a projected annual production volume ranging from 80,000 to 100,000 vehicles.

This revitalization effort for the Belvidere plant will significantly offset the loss of approximately 1,200 jobs from its idling, indicating a robust recovery plan through the addition of two working shifts. The UAW has underscored their tenacious efforts during negotiations to ensure the plant’s comeback.

Additionally, the Toledo Assembly Complex is expected to be on the receiving end of a $1.5 billion investment, which will facilitate the production of plug-in hybrid versions of the Jeep Wrangler and Gladiator in 2025. Following this, the next-generation Jeep Wrangler, including its electric and range-extended versions, is set to roll out from this facility in 2028.

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Moreover, the Warren Truck Plant is slated for a $600 million investment, earmarked for the 2025 launch of the redesigned Wagoneer and Grand Wagoneer, alongside their hybrid counterparts. By 2027, these models will also be available in fully electric variants, sharing the STLA Frame platform that the Ram 1500 REV employs. A coinciding facelift for both models is anticipated with the debut of the electric versions.

The strategic agreement also touches upon a new $3.2 billion battery plant in Belvidere, expected to commence operations in 2028. Despite the planned closure of several parts distribution centers, a significant concern for UAW members, the union portrays this move as a decision between job consolidation or total job losses.