New York
CNN
—
Stellantis is shuttering its Illinois plant in February leading to indefinite layoffs for 1,350 staff, the corporate stated in a press release, citing growing prices within the electrical automobile market.
“Our business has been adversely affected by a mess of things like the continuing Covid-19 pandemic and the worldwide microchip scarcity, however essentially the most impactful problem is the growing price associated to the electrification of the automotive market,” Stellantis stated in a press release. The corporate stated it’s taking steps “stabilize manufacturing” and “enhance effectivity” in its North American amenities.
The European carmaker stated it’s going to “idle” the meeting plant in Belvidere, Illinois on February 23 and stated the layoffs are anticipated to exceed six months. Stellantis, the father or mother firm of Chrysler, Dodge and Jeep, stated it’s going to “make each effort” to put the laid off staff in open positions and is on the lookout for different alternatives to repurpose the Belvidere manufacturing unit.
The United Auto Employees Worldwide Union stated on Fb it was “deeply angered” by the choice. The group’s president Ray Curry stated 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, stated in a press release.
In October, the corporate stated its three way partnership producing Jeep automobiles in China is submitting for chapter.
Final July, Stellantis made a $35.5 billion dedication to electrical automobiles by the top of 2025 to broaden 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 automobiles inside 4 years, CEO Carlos Tavares stated.
– Peter Valdes-Dapena contributed to this report.