2016 Jeep Cherokee Sport
DETROIT – Stellantis mentioned Friday that it plans to indefinitely idle a Jeep plant in Illinois, beginning early subsequent 12 months, to chop prices because it invests in electrical automobiles.
The transatlantic automaker, previously referred to as Fiat Chrysler, mentioned the plant will stop manufacturing as of Feb. 28. The greater than 1,200 staff on the facility, which produces Jeep Cherokee SUVs, might be positioned on indefinite layoffs, the corporate mentioned.
“Our business has been adversely affected by a mess of things like the continued COVID-19 pandemic and the worldwide microchip scarcity, however probably the most impactful problem is the rising value associated to the electrification of the automotive market,” Stellantis mentioned in an emailed assertion.
The corporate described the idling as a “tough however mandatory motion.” It mentioned it’s “working to establish different alternatives to repurpose the Belvidere facility and has no extra particulars to share right now.”
The Illinois plant has solely been operating on considered one of three meeting shifts. It has sporadically been idled throughout the coronavirus pandemic and ongoing semiconductor chip scarcity.
Cherokee gross sales have been down by about 61% via the third quarter of this 12 months, greater than some other automobile in Jeep’s lineup.
Stellantis didn’t instantly reply for touch upon whether or not recessionary fears or the corporate’s collective bargaining subsequent 12 months with the United Auto Employees union performed into its determination.
In late-2018, forward of the 2019 UAW negotiations with the Detroit automakers, General Motors introduced plans to doubtlessly shut a number of amenities. Solely one of many main meeting vegetation – Lordstown Meeting in Ohio – for the automaker truly ended up closing following the negotiations.