Workers at the Stellantis plant in Belvidere, Illinois in 2012
Scott Olson/Getty photo
- Jeep car manufacturer Stellantis has confirmed that it will be decommissioning an assembly plant in Illinois beginning February 2023.
- The company attributed the closures to the “growing costs associated with the electrification of the automotive market.”
- Reuters reports that as a result, about 1,350 workers will be laid off.
Traditional auto companies are experiencing increasing difficulties as they shift to more production tram.
Stellantis, oversees the production of 16 auto brands, including Jeep, Chryslerand avoidconfirmed to Insider that it plans to decommission an assembly plant in Belvidere, Illinois, beginning February 2023.
“Our industry has been adversely affected by a multitude of factors such as the ongoing COVID-19 pandemic and global microchip shortages, but the biggest challenge has been the growing costs associated with electrification of the automotive market,” the company said in a statement. .
Stellantis also said the move would result in “indefinite layoffs”. Factory closed for the first time report by Reuters, reports that the factory employs about 1,350 workers.
The outage comes as many auto companies pledge to prioritize production of electric vehicles over gasoline-powered ones to comply with the new regulation. emissions regulations.
Last month, the EU reached an agreement requiring carmakers to achieve zero emissions by 2035, and in the US, more than a third of the states has signaled that it plans to ban the sale of new gasoline-powered cars by the same year.
In July 2021, Stellantis speak 100% of sales in Europe and 50% of sales in the US will be battery electric vehicles by the end of 2030.
There are no current plans to resume operations at its Belvidere plant, where production Jeep Cherokee SUVs.
“The company is also working to identify other opportunities to reuse the Belvidere facility and has no further details to share at this time,” Stellantis told Insider.
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