Stellantis is closing its Illinois plant in February, resulting in the indefinite layoffs of 1,350 employees, the company said in a statement, citing rising costs in the electric vehicle market.
“Our industry has been adversely affected by a myriad of factors, such as the current Covid-19 pandemic and the global shortage of microchips, but the most impactful challenge is the rising cost related to the electrification of the automotive market,” Stellantis said in a statement.
The company said it is taking steps to “stabilize production” and “improve efficiency” at its North American facilities.
The European automaker said it will “shut down” the assembly plant in Belvidere, Ill., on Feb. 23 and said layoffs must exceed six months. Stellantis, the parent company of Chrysler, Dodge and Jeep, said it will make “every effort” to place laid-off employees into vacant positions and is looking for other opportunities to repurpose the Belvidere plant.
The United Auto Workers International Union said on Facebook that it was “deeply angered” by the decision. Group chairman Ray Curry said it is “unacceptable” that Stellantis is not allocating new products to the factory.
The Illinois plant manufactures the Jeep Cherokee and will continue to manufacture the vehicle until it closes, but the company has not commented on the future of that make or model.
“This is an important vehicle in the lineup and we remain committed to the mid-size SUV segment for the long term,” Jodi Tinson, a Stellantis spokeswoman, said in a statement.
In October, the company said its Jeep vehicle manufacturing joint venture in China was filing for bankruptcy.
Last July, Stellantis made a $35.5 billion EV commitment through the end of 2025 to expand its portfolio. The company has planned 70% of its sales in Europe and 40% of its sales in the United States for all-electric vehicles or plug-in hybrids within four years, CEO Carlos Tavares said.
*Peter Valdes-Dapena contributed to this story
Source: CNN Brasil
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