(The Center Square) – The reopening of Stellantis’ Belvidere plant is on hold as questions loom over the deal’s finances.
The automaker issued a statement saying its plans for Belvidere are delayed, but the company stands by its commitment to reopen it.
Wirepoints Executive Editor Mark Glennon said the Stellantis deal was fishy from the start.
“Ten months ago, the deal was announced firmly to a lot of fanfare, promises of thousands of jobs and such, but Gov. [J.B.] Pritzker never gave us a number on the incentive package that the state of Illinois was having to pay for it,” Glennon said.
Glennon said market conditions may be the reason Stellantis is delaying the Belvidere project.
“Every one of Illinois’ much-heralded electric-vehicle projects that taxpayers are helping fund is now troubled,” Glennon said.
Glennon said Rivian is losing money, Lion Electric laid off about 300 workers last month, and former President Donald Trump stated his opposition to the Gotion project in Manteno due to Gotion’s close ties to the Chinese Communist Party.
Pritzker announced last month that the Belvidere plant would receive $334 million from federal taxpayers.
Glennon said the governor could offer state taxpayer incentives to Stellantis without going back to the Illinois General Assembly.
“He can arbitrarily do it, for the most part. They gave him a special closing fund, as they call it, which allows him to do it,” Glennon said.
The General Assembly allotted $700 million for the new Illinois Quantum and Microelectronics Park on Chicago’s Southeast Side, which the governor announced last month.
PsiQuantum, the company selected to anchor the site, issued a statement that state, county, and city governments offered a combined incentive package worth more than $500 million over 30 years.
Glennon said there are questions about the PsiQuantum project as well.
“It only directly creates some 75 jobs for that particular company. Now, Pritzker thinks that that’s going to spark creation of a whole park based around quantum computing there in that Southeast Side project, but that remains to be determined. That’s very speculative,” Glennon said.
United Auto Workers President Shawn Fain threatened a strike against Stellantis during his speech at the Democratic National Convention in Chicago this week.
Stellantis announced plans last year to reopen the Belvidere plant for electric truck assembly, along with a battery plant and a megahub for parts.
Stellantis provided The Center Square with the following statement:
“To ensure the Company’s future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs, it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands. Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.
“The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement and strongly objects to the Union’s accusations. In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels. Therefore, the Union cannot legally strike over a violation of this letter at this time.”
