Stellantis confirms next-generation Jeep Cherokee to be produced at Belvidere plant

Briefing Overview

• Jeep parent company Stellantis issued a press release on August 14, announcing that the next-generation Cherokee SUV will be the first model for the U.S. market built on its new STLA One platform, and will be assembled at its Belvidere, Illinois plant.
• Pre-production of the next-generation Cherokee is expected to begin in the first half of 2028, with series production targeted for the second half of 2029. Stellantis plans to build at least two models at the plant based on the STLA One architecture, which has been idle since production of the fifth-generation Jeep Cherokee ended in February 2023.
• In preparation for the launch of the new Jeep Cherokee, Stellantis expects to increase its investment in the Belvidere plant to more than $800 million, up from the $600 million previously announced in October 2025. This is part of its overall $13 billion commitment to expand U.S. manufacturing capacity.

Deep Insights

In July 2024, Stellantis was one of the recipients of a $1.7 billion U.S. Department of Energy grant aimed at supporting the conversion of idle or at-risk automotive manufacturing plants, such as the Belvidere facility, into electric vehicle production. Stellantis received $335 million of that amount for the plant's electrification. However, due to slower-than-expected EV sales growth and billions of dollars in EV-related writedowns, Stellantis, like General Motors and Ford Motor Company, has adjusted its electrification strategy.

In February of this year, Stellantis announced writedowns on approximately $26 billion previously earmarked for new EV and electrification initiatives over the five-year period starting July 2021, with cancelled investments including battery technology development and new EV platforms.

The company now says the Belvidere plant, located about 60 miles west of Chicago, will play a central role in its FaSTLAne 2030 strategy, unveiled in May, which aims to launch new models and boost sales, particularly in the North American market, where profits have declined over the past few years.

"Launching the next-generation Cherokee on the STLA One platform allows us to offer a more competitive product while leveraging the strengths of our U.S. manufacturing operations," said Antonio Filosa, Stellantis CEO and North America Chief Operating Officer, in a statement. "Choosing the right product architecture, timing, and execution path supports our growth strategy and creates the best long-term results and stability for our employees, customers, and stakeholders."

According to Stellantis, the modular STLA One global vehicle architecture is designed to reduce time-to-market, enhance supplier stability, and improve cost efficiency by up to 20%. It consolidates Stellantis' five distinct platforms into one scalable version, reducing complexity and expanding coverage of global B, C, and D-segment vehicles.

According to the press release, the Belvidere plant will have the capacity for two-shift production of all powertrain versions of the next-generation Cherokee.

As part of the FaSTLAne 2030 strategy, Stellantis plans to invest a total of 60 billion euros (approximately $69.7 billion) over the next five years to accelerate growth and profitability. In an investor presentation outlining the strategy in May, Filosa said 60% of that funding would go toward promoting Stellantis' brands and products, and 40% toward new vehicle platforms, technology, and other shared assets. He also noted that the North American market currently accounts for about 40% of the company's revenue.

When Stellantis announced its initial plan to invest $600 million in Belvidere last October, it expected to add about 3,300 jobs and begin production of the Jeep Cherokee and Jeep Compass SUVs for the U.S. market in 2027. Now, the plant restart has been delayed to 2028.

For UAW workers laid off when the plant was idled in 2023, Stellantis said it remains committed to supporting those waiting for the plant to restart and will offer temporary transfer opportunities. The company said it will continue to pay supplemental unemployment benefits and medical costs, and will increase unemployment benefit amounts in line with wage increases under the 2023 UAW labor contract, while also addressing future pension credits for laid-off employees.

When plans to idle the Belvidere plant were announced in late 2022, Stellantis said it would make every effort to place indefinitely laid-off UAW workers into open full-time positions. Some laid-off workers were offered opportunities to transfer to other Stellantis manufacturing plants in Indiana and Ohio.