Pundits say Illinois' motor vehicle manufacturing future lies in three major cities. Yes, Illinois' fast-evolving auto industry comes down to a thrilling tale of three cities- Chicago, Belvidere, and Normal. The thriving auto industry is famous for producing a range of vehicles, from electric trucks to international megamergers. Very soon, Illinois' motor manufacturing factories will be building a range of SUVs- this is primarily the largest auto sales segment. But the path forward will be defined by several radically different factors. Think of it: In downstate Normal, a usually hibernating auto city is eagerly waiting for the rebirth of its long-dormant plant. How? It's awaiting the electric truck maker Rivian to flip the switch, signaling the start of the production of the pioneering e vehicle brands.
In the meantime, the Fiat Chrysler plant located in Belvidere is still reeling from the big loss of a third shift. As such, Fiat is anticipating a possible merger with the auto giant Peugeot. At the same time, Ford's Chicago plant is already moving at full speed heading into 2022. The plant was recently renovated with a whopping $1 billion budget. Fiat Chrysler and Ford have also ratified a 4-year contract with the United Auto Workers. This was necessary to avoid the prolonged strike that infamously shut down General Motors for more than 0ne month before a deal was struck.
The famous Illinois auto plants certainly face a new challenge. The future of the evolving auto industry now seems to include everything- from assembly lines operated by robots to self-driving vehicles. So, the auto managers (and thousands of workers) have to deal with this new challenge. And the row could spill down to the roads. Making things worse, pundits projected that new car sales would decline 1.2% equaling 16.8 million vehicles by 2020. The National Automobile Dealers Association released these statistics in its annual forecasts. If that came pass, it would be the first time the new vehicle sales slid below 17 million in 5 years. Patrick Manzi, the dealers' association senior economist, said this: "We must accept that most of the pent-up new vehicle demand has already been met. Many people, including those who could easily afford to buy a new vehicle, are likely to be tempted to go for second-hand units." Analysts note that during the 20009 great recession, new car sales dipped to 10.4 million vehicles. It peaked to 17.5 million units in 2016. SUVs and trucks have since surpassed sedans as the natural vehicle for choice among many consumers. They now represent 72% of new vehicles. Manzi says: "It seems that shift is permanent."
Further afield, the startup electric truck makers Rivian received a huge boost heading into its first year of production. The auto giant closed in on a funding deal worth $1.3 billion; this includes some new investments from Amazon and Ford. Indications generally suggest auto manufacturing is quickly returning to normal. Recently there was palpable excitement following Rivian's holding of an open house right in the town circle. The automakers were widely expected to offer some sneak peeks of its brand new sleek prototypes. Many hoped to get the chance to meet and greet with Rivian founder and CEO RJ Scaringe. Of course, there were real hopes for a big announcement to the effect that the giant automaker was holding out thousands of job opportunities for unemployed people. Well, the rubber will probably meet the road soon enough. Many expected Rivian's first productions- the high-performance e truck and SUV- to roll off the assembly lines at a former plant owned by Mitsubishi; yes, these were expected to be retooled at the town's outskirts.
The 36-year-old Rivian CEO RJ Scaringe said: "Seeing what's in this facility reminds us all of the real scale of what we're doing. Get ready for it- everything we're doing will soon become crystal clear to lots of people." The Michigan-based Rivian, which Scaringe founded about a decade ago, is quickly gaining momentum in its goal to turn into the Tesla of Trucks. The company has drawn more than $2.8 billion in general investments since last year. The benefactors include Amazon, Cox Automotive, and Ford, among others. Rivian recently announced it would assemble 100,000 custom electric delivery trucks for Amazon. These would be built alongside the SUV, Rivian's consumer-focused truck.