Jeep Cherokee 2016
Source: Jeep
DETROIT – Stellantis said Friday that it plans to indefinitely shut down a Jeep plant in Illinois, beginning early next year, to cut costs when it comes to investing in electric vehicles.
The transatlantic automaker, formerly known as Fiat Chrysler, said the plant would cease production as of February 28. More than 1,200 workers at the Jeep Cherokee SUV production facility will be laid off indefinitely. deadline, the company said.
“Our industry has been adversely affected by a multitude of factors such as the ongoing COVID-19 pandemic and global shortages of microchips, but the biggest challenge has been the increasing costs associated with electrify the automotive market,” Stellantis said in an emailed statement.
The company describes idling as a “difficult but necessary act.” It said it is “working to identify other opportunities to reuse the Belvidere facility and has no further details to share at this time.”
United Auto Workers President Ray Curry described factory idling as “completely wrong” and “unacceptable”, especially at this time of year.
“The announcement of the closure just weeks before the holiday season is also a cruel disregard for the contributions of our members from UAW Locals 1268 and 1761. We will fight this announcement,” he said. speak. said in a statement.
The Illinois plant only runs one of three assembly shifts. It does not work from time to time during the coronavirus pandemic and ongoing semiconductor chip shortages.
Cherokee sales fell about 61% in the third quarter of this year, more than any other vehicle in Jeep’s lineup.
A Stellantis spokesperson, when asked if concerns about a recession or next year’s collective bargaining with the United Auto Workers union influenced the company’s decision, reiterated the rationale. as stated in the statement.
At the end of 2018, ahead of the 2019 UAW negotiations with the Detroit automakers, common engine announced plans to potentially close some facilities. Only one of the major assembly plants – Lordstown Assembly in Ohio – for the automaker actually closed following negotiations.
