Stellantis Idles Illinois Plant Indefinitely

Chrysler parent Stellantis has said it will indefinitely halt operations at an assembly plant in Illinois in February, citing the rising costs of electric vehicle production, David Shepardson and Ben Klayman reported for Reuters.

Photo Insert: The automaker, which employs about 1,350 workers at the Belvidere, Illinois, plant that builds the Jeep Cherokee SUV, said the action will result in indefinite layoffs and added it may not resume operations as it considers other options.

The automaker, which employs about 1,350 workers at the Belvidere, Illinois, plant that builds the Jeep Cherokee SUV, said the action will result in indefinite layoffs and added it may not resume operations as it considers other options.

Stellantis said the 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 has also said it will invest over 30 billion euros ($31.6 billion) through 2025 in electrifying its vehicle lineup. It also has said it expects EVs to make up 100% of its sales in Europe and 50% in the United States by 2030.

The White House did not immediately comment but has repeatedly argued EVs will boost US auto employment.

Tim Ferguson, shop chairman for United Auto Workers (UAW) union Local 1268, which represents the Illinois plant's hourly workers, said in an interview that company documents show Cherokee production being moved to the company's Toluca, Mexico, plant.

"It's a pretty tough pill to swallow that they're going to ship your vehicle to Mexico," Ferguson said. "To me, there is no question about it. Their plan is to close this plant."

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