New York
CNN
—
Stellantis is shuttering its Illinois plant in February leading to indefinite layoffs for 1,350 workers, the corporate mentioned in a press release, citing rising prices within the electrical automobile market.
“Our trade has been adversely affected by a mess of things like the continuing Covid-19 pandemic and the worldwide microchip scarcity, however probably the most impactful problem is the rising price associated to the electrification of the automotive market,” Stellantis mentioned in a press release. The corporate mentioned it’s taking steps “stabilize manufacturing” and “enhance effectivity” in its North American services.
The European carmaker mentioned it’s going to “idle” the meeting plant in Belvidere, Illinois on February 23 and mentioned the layoffs are anticipated to exceed six months. Stellantis, the mother or father firm of Chrysler, Dodge and Jeep, mentioned it’s going to “make each effort” to position the laid off workers in open positions and is on the lookout for different alternatives to repurpose the Belvidere manufacturing unit.
The United Auto Staff Worldwide Union mentioned on Fb it was “deeply angered” by the choice. The group’s president Ray Curry mentioned it’s “unacceptable” Stellantis isn’t allocating new merchandise to the plant.
The Illinois plant builds the Jeep Cherokee and can proceed to fabricate the automobile till the manufacturing unit closes, however the firm had no remark about the way forward for that make and mannequin.
“This is a crucial automobile within the lineup, and we stay dedicated long run to this mid-size SUV phase,” Jodi Tinson, a Stellantis spokesperson, mentioned in a press release.
In October, the corporate mentioned its three way partnership producing Jeep autos in China is submitting for chapter.
Final July, Stellantis made a $35.5 billion dedication to electrical autos by the top of 2025 to increase its portfolio. The corporate deliberate for 70% of its European gross sales and 40% of its US gross sales to both be absolutely electrical or plug-in hybrid autos inside 4 years, CEO Carlos Tavares mentioned.
– Peter Valdes-Dapena contributed to this report.
