Business

Stellantis to idle Jeep plant, lay off employees to cut expenses for EVs

2016 Jeep Cherokee Sport

Source: Jeep

DETROIT – Stellantis stated Friday that it prepares to forever idle a Jeep plant in Illinois, beginning early next year, to cut expenses as it buys electrical lorries.

The transatlantic car manufacturer, previously called Fiat Chrysler, stated the plant will stop production since Feb. 28. The more than 1,200 employees at the center, which produces Jeep Cherokee SUVs, will be put on indefinite layoffs, the business stated.

“Our industry has been adversely affected by a multitude of factors like the ongoing COVID-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market,” Stellantis stated in an emailed declaration.

The business explained the idling as a “difficult but necessary action.” It stated it is “working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time.”

The Illinois plant has actually just been working on among 3 assembly shifts. It has actually sporadically been idled throughout the coronavirus pandemic and continuous semiconductor chip lack.

Cherokee sales were down by about 61% through the 3rd quarter of this year, more than any other car in Jeep’s lineup.

Stellantis did not right away react for discuss whether recessionary worries or the business’s cumulative bargaining next year with the United Auto Workers union played into its choice.

In late-2018, ahead of the 2019 UAW settlements with the Detroit car manufacturers, General Motors revealed strategies to possibly close a number of centers. Only among the significant assembly plants – Lordstown Assembly in Ohio – for the car manufacturer in fact wound up closing following the settlements.

Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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