2016 Jeep Cherokee Sport
Source: Jeep
DETROIT – Stellantis stated Friday that it plans to indefinitely idle a Jeep plant in Illinois, beginning early subsequent yr, to chop prices because it invests in electrical automobiles.
The transatlantic automaker, previously generally known as Fiat Chrysler, stated the plant will stop manufacturing as of Feb. 28. The greater than 1,200 employees on the facility, which produces Jeep Cherokee SUVs, will probably be positioned on indefinite layoffs, the corporate 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 assertion.
The firm described the idling as a “difficult but necessary action.” It stated it’s “working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time.”
United Auto Workers President Ray Curry described the idling of the plant as “grossly misguided” and “unacceptable,” particularly throughout this time of yr.
“Announcing the closure just a few weeks from the holidays is also a cruel disregard for the contributions of our members from UAW Locals 1268 and 1761. We will fight back against this announcement,” he stated in an announcement.
The Illinois plant has solely been working on considered one of three meeting shifts. It has sporadically been idled through the coronavirus pandemic and ongoing semiconductor chip scarcity.
Cherokee gross sales had been down by about 61% by means of the third quarter of this yr, greater than another automobile in Jeep’s lineup.
A Stellantis spokeswoman, when requested whether or not recessionary fears or collective bargaining subsequent yr with the United Auto Workers union performed into the corporate’s determination, reiterated the reasoning outlined within the assertion.
In late-2018, forward of the 2019 UAW negotiations with the Detroit automakers, General Motors introduced plans to doubtlessly shut a number of services. Only one of many main meeting crops – Lordstown Assembly in Ohio – for the automaker really ended up closing following the negotiations.