The maker of Jeep will idle its plant in Belvidere, Illinois, at the end of February in a "necessary action," citing the increasing costs from electric vehicles and other industry disruptions in its decision.
The Stellantis NV plant that produces the Jeep Cherokee crossover west of Chicago outside Rockford employs 1,350 salaried and hourly workers. They were sent layoff notices about the plant idling effective Feb. 28. The company in a statement said it will make efforts to place indefinitely laid-off employees in open full-time positions as they become available and to identify other ways to repurpose the plant.
"Our industry has been adversely affected by a multitude of factor 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 spokeswoman Jodi Tinson said in a statement.
"Stellantis has taken a number of actions to stabilize production and improve efficiency at its North American facilities to preserve affordability and customer satisfaction in terms of quality."
The Detroit News last year identified Belvidere among the vulnerable North American assembly plants as shifts were canceled, the second shift was cut and it faced other layoffs amid the chip shortage. Cherokee sales were down 61% in the first nine months of 2022.
"We are all deeply angered by Stellantis's decision to idle the Belvidere Assembly plant without a plan for future product," outgoing United Auto Workers Vice President Cindy Estrada said in a statement. "There are many vehicle platforms imported from other countries that could be built in Belvidere with skill and quality by UAW members at Belvidere. The transition to electrification also creates opportunities for new product. Companies like Stellantis receive billions in government incentives to transition to clean energy. It is an insult to all taxpayers that they are not investing that money back into our communities."
Added UAW President Ray Curry, who faces a runoff election next year: "We believe Stellantis is grossly misguided in idling this plant which has produced profits for the company since 1965. Not allocating new product to plants like Belvidere is unacceptable. 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."
