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Saturday, November 23, 2024

From Duryea to Rivian: Illinois Automobile Manufacturing Heritage and Future

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Representative Joe C. Sosnowski (R) | Illinois General Assembly

Representative Joe C. Sosnowski (R) | Illinois General Assembly

The roots of automobile manufacturing in the United States can be traced back to Illinois, specifically Peoria, where the Duryea brothers pioneered the mass production and marketing of the first gasoline-powered car in 1893. This groundbreaking vehicle, equipped with a four-horsepower, two-stroke engine, laid the foundation for the automotive industry in Illinois.

The Duryea Manufacturing Company, established by Charles Duryea in Peoria Heights, began producing the Peoria Duryea Motor Trap in 1898. It was in August of that year when the first Duryea vehicle was seen driving in Peoria. The Duryea vehicles featured a unique design, with a single handle that served as the steering, gear shift, and throttle control. However, despite their initial success, the Duryea Manufacturing Company faced financial challenges and eventually closed its doors due to an economic depression. Charles Duryea, who moved to Pennsylvania, continued his automobile manufacturing endeavors there, never returning to Peoria.

Over the years, the Illinois automotive industry has experienced both highs and lows. In recent times, Stellantis, the parent company of Chrysler, idled its assembly plant in Belvidere in February 2023, resulting in the layoff of 1,350 employees. This facility had been a significant economic driver for the town since the 1960s.

However, there is hope on the horizon for the automotive industry in Illinois. After a six-week strike by United Auto Workers, Stellantis reached a tentative contract agreement with the UAW in late October 2023. As part of this agreement, the Belvidere plant is set to be reopened, with Stellantis investing nearly $5 billion in remodeling the plant over the next four years. Additionally, Stellantis plans to invest $3.2 billion in a battery plant and $1.5 billion in remodeling Belvidere for electric midsize truck production. The UAW members overwhelmingly approved the new contract on November 12.

In a move to consolidate operations and increase wages for union workers, Stellantis announced the closure of its Milwaukee plant, merging it with the Belvidere facility.

The closure of the Mitsubishi plant in Normal in 2015 left nearly 1,300 people unemployed. However, the plant found new life when startup electric truck manufacturer Rivian purchased it in 2017. Rivian, with a workforce of 7,500, has become a major engine for the local economy. Though it experienced a decline in its market value earlier this year, Rivian is determined to position itself as an electric vehicle hub and is adjusting its production goals accordingly. The company plans to produce 50,000 vehicles in 2023, with a potential workforce expansion to 1,700.

Another player in the Illinois automotive industry is Lion Electric in Joliet. This innovative manufacturer specializes in zero-emission vehicles, including all-electric school buses, minibuses for special needs, and urban trucks. The Joliet plant, which opened in 2021, spans 900,000 square feet and focuses on medium and heavy-duty commercial vehicle production. With an estimated production capacity of 20,000 vehicles per year, the plant provides employment to 1,400 individuals.

Ford has also made significant investments in the Illinois automotive industry. In 2019, the company invested $1 billion in its Chicago Assembly and Stamping plants, expanding capacity for the production of various Ford models. The facility underwent extensive upgrades, including the installation of modern equipment and the addition of employee-centered areas. These investments have created 500 new jobs and solidified Ford's commitment to the future of automobile manufacturing in Illinois.

With Rivian and Lion Electric leading the charge in electric vehicle production, and Ford ramping up its efforts in this area, the future of automobile manufacturing in Illinois looks promising. Industry reports suggest that by 2040, the majority of cars sold in the United States will be electric. Lion Electric's Joliet plant, boasting the largest electric vehicle-only facility in the country, is a testament to the state's potential to thrive in the era of electric vehicles.

Illinois, with its rich automobile manufacturing heritage and its focus on innovation and adaptation, is poised to play a significant role in shaping the future of the automotive industry in the United States.

Click this link to access more information: https://joesosnowski.org/2023/12/12/from-duryea-to-rivian-illinois-automobile-manufacturing-heritage-and-future/

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