Stellantis idle Jeep plant indefinitely, laying off workers to cut EV costs

Detroit – stellants On Friday, it said it plans to idle indefinitely at its Jeep plant in Illinois, starting early next year, to cut costs as it invests in electric vehicles.

The transatlantic automaker, formerly Fiat Chrysler, said the plant will cease production from February 3. 28. The company said more than 1,200 workers at the facility, which produces Jeep Cherokee SUVs, will be laid off indefinitely.

“Our industry has been negatively affected by many factors such as the ongoing COVID-19 pandemic and global microchip shortage, but the most impactful challenge is the increasing cost related to electrification of the automotive market,” Stellantis said in an emailed statement. .

The company described the slowdown as a “difficult but necessary measure”. It said it is “working to identify other opportunities to repurpose the Belvedere facility and has no additional details to share at this time.”

The Illinois plant was only operating one of three assembly shifts. It has been out of business intermittently during the coronavirus pandemic and ongoing semiconductor chip shortages.

Cherokee sales fell about 61% during the third quarter of this year, more than any other vehicle in the Jeep lineup.

Stellantis did not immediately respond to comment on whether recession concerns or the company’s collective bargaining next year with the United Auto Workers union played a role in its decision.

In late 2018, ahead of the UAW’s 2019 negotiations with the Detroit automakers, general motors He announced plans to close several potential facilities. Only one of the automaker’s major assembly plants — the Lordstown Assembly in Ohio — actually ended up closing after negotiations.