Last Friday Stellantis announced it will indefinitely halt operations at an Illinois assembly plant in February, citing the rising costs of electric vehicle production.
The automaker, which employs about 1,350 workers at the Belvidere, Illinois plant that builds the Jeep Cherokee SUV, said the action will result in indefinite layoffs and added it may not resume operations as it considers other options. Stellantis said the 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." The company had said it will invest over 30 billion euros ($31.6 billion) through 2025 on electrifying its vehicle lineup, and also expected EVs to make up 100% of its sales in Europe and 50% in the United States by 2030.
The company shared it is working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time. Sam Fiorani, head of production at AutoForecast Solutions said the UAW and Stellantis could reach a deal in contract talks next year for a new vehicle for the plant "but any new product redirected its way will take investment and time to retool the plant, leaving Belvidere empty for a year or more."
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