DeKalb Times

The roots of automobile manufacturing in the United States can be traced back to Illinois, specifically Peoria, where the Duryea brothers mass-produced and marketed the first gasoline-powered car in 1893. However, the automotive industry in Illinois has had its share of ups and downs over the years.

One recent setback was when Stellantis, Chrysler's parent company, idled its assembly plant in Belvidere in February 2023, leading to the layoff of 1,350 employees. This factory had been an economic engine for the town for decades. However, after a six-week strike by United Auto Workers, Stellantis reached a tentative contract agreement with the UAW in late October 2023, and the Belvidere plant is set to be reopened. Stellantis plans to invest nearly $5 billion in remodeling the plant over the next four years, including $1.5 billion for electric midsize truck production.

In addition to the Belvidere plant, Illinois is also home to the Rivian plant in Normal and the Lion Electric plant in Joliet. Rivian, a start-up electric truck manufacturer, bought the closed Mitsubishi plant in 2017 and has been working to position itself as an electric vehicle hub. Although Rivian faced a market peak shrinkage earlier this year, it is still a major engine for the local economy, with plans to produce 50,000 vehicles in 2023 and expand its workforce to 1,700.

Lion Electric, on the other hand, is an innovative manufacturer of zero-emission vehicles, including electric school buses and urban trucks. The plant, which opened in 2021, has a production capacity of 20,000 vehicles per year and employs 1,400 workers.

Ford has also made significant investments in Illinois. In 2019, the company invested $1 billion in its Chicago Assembly and Stamping plants, creating 500 jobs and expanding its production capacity for electric vehicles. The facility underwent extensive renovations, including the installation of modern equipment and employee-centered upgrades.

The future of automobile manufacturing in Illinois looks promising, with Rivian, Lion Electric, and Ford leading the way in electric vehicle production. Industry reports suggest that by 2040, the majority of cars sold in America will be electric. Lion Electric's plant in Joliet is even touted as the largest electric vehicle-only plant in the country.

The transition to electric vehicles brings both opportunities and risks for Illinois. While the state stands to benefit from the wave of automotive investment, there is also a potential risk for producers of components not used in electric vehicles. However, with the presence of major players like Rivian, Lion Electric, and Ford, Illinois is well-positioned to navigate the changing auto industry landscape and continue its legacy as a hub for automobile manufacturing.

In conclusion, the auto industry in Illinois has a rich history, and it is now adapting to the changing landscape of electric vehicles. With investments and expansions in electric vehicle production by companies like Rivian, Lion Electric, and Ford, Illinois is poised to remain a significant player in the automotive industry.

Click this link to access more information: https://repkeicher.com/2023/12/12/what-the-changing-auto-industry-means-for-illinois/