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.