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The Jeep Compass could soon be back in Belvidere, Illinois, joining the next-generation Cherokee in a factory that once built both models. Stellantis CEO Antonio Filosa hinted last October that the Belvidere plant might produce the Compass alongside the Cherokee, and the logic has only grown stronger as tariffs reshape the cost of importing from Mexico.
Today, both the Compass and the current Cherokee are supplied to US dealers from Stellantis’s Toluca, Mexico, facility. With the Trump administration’s new tariffs on Mexican-built vehicles adding 25% in early 2025, moving production north of the border has become an urgent financial calculation. The Belvidere plant, which is being revived after a three-year shutdown, offers a domestic solution.
The Compass originally rolled off the Belvidere line from 2007 until 2016, when Stellantis shifted production to Mexico to cut costs. The Cherokee stayed in Illinois until 2023, when the outgoing generation ended and the factory was idled. Now, with a $800 million investment and a target to restart production in 2029, Belvidere is set to become Stellantis’s flagship US assembly site for Jeep SUVs.
Stellantis initially planned to build the new Compass at Brampton Assembly in Ontario, Canada, after a major retooling. But the company paused that work in early 2025 and later scrapped the Compass plan entirely. Industry sources now say Stellantis is considering closing and selling the Brampton plant, which built the final Dodge Hemi muscle cars. The shift toward Belvidere is a clear win for the United Auto Workers union, which negotiated the plant’s reopening as part of the 2023 contract.
The next Cherokee, confirmed for Belvidere, will be the first vehicle in North America built on Stellantis’s new STLA One architecture. Pilot production is scheduled for the first half of 2028, with customer deliveries beginning in the second half of 2029. Stellantis has said the Belvidere plant will eventually produce at least two models on the STLA One platform — and a future Compass seems the most likely second candidate, though the company has not officially confirmed it.
The investment in Belvidere has grown from $600 million to more than $800 million, according to Stellantis. More than $60 million had already been spent through July 2024 on stamping, body, paint, and assembly preparations. The scale of the investment signals that Stellantis sees Belvidere as a long-term hub rather than a temporary stopgap.
Value-Added Perspective: Tariff-Driven Re-Shoring
The Belvidere decision is part of a broader trend among automakers to bring production back to the US as trade policy becomes more protectionist. Unlike the 2010s, when Mexico offered cheap labor and duty-free access, the current tariff landscape erases much of that advantage. For Stellantis, building the Compass in Illinois eliminates the 25% tariff on Mexican-built Jeeps, offsets logistics costs, and satisfies UAW demands for job security.
But the timeline is uncertain. The next Cherokee won’t launch until 2029, and the Compass could follow even later. Stellantis may need to decide soon whether to invest in tooling for the Compass on the STLA One line or risk losing sales to rivals like the Toyota RAV4 and Honda CR-V, which are both built in the US and Canada. If the Compass stays in Mexico for another generation, it could face a permanent price disadvantage.
Meanwhile, the Canadian auto industry is watching nervously. Brampton’s loss is Belvidere’s gain, and the departure of the Compass plan leaves Ontario with fewer assembly plants than at any point in the last 50 years. Stellantis has not ruled out using the Brampton site for other purposes, but the company’s silence on a future product suggests the plant may be sold.
For now, Belvidere workers are preparing for a busy 2028. The question is whether the Compass will join the Cherokee on the line — or whether history will repeat itself, with the little Jeep staying south of the border.
