Stellantis to idle Jeep plant, lay off employees to chop prices for EVs

2016 Jeep Cherokee Sport

Supply: Jeep

DETROIT – Stellantis stated Friday that it plans to indefinitely idle a Jeep plant in Illinois, beginning early subsequent yr, to chop prices because it invests in electrical automobiles.

The transatlantic automaker, previously generally known as Fiat Chrysler, stated the plant will stop manufacturing as of Feb. 28. The greater than 1,200 employees on the facility, which produces Jeep Cherokee SUVs, can be positioned on indefinite layoffs, the corporate stated.

“Our business has been adversely affected by a large number of things like the continued COVID-19 pandemic and the worldwide microchip scarcity, however essentially the most impactful problem is the growing price associated to the electrification of the automotive market,” Stellantis stated in an emailed assertion.

The corporate described the idling as a “tough however obligatory motion.” It stated it’s “working to establish different alternatives to repurpose the Belvidere facility and has no extra particulars to share at the moment.”

The Illinois plant has solely been working on one in every of three meeting shifts. It has sporadically been idled in the course of the coronavirus pandemic and ongoing semiconductor chip scarcity.

Cherokee gross sales had been down by about 61% by means of the third quarter of this yr, 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 yr with the United Auto Staff union performed into its choice.

In late-2018, forward of the 2019 UAW negotiations with the Detroit automakers, General Motors introduced plans to probably shut a number of services. Solely one of many main meeting vegetation – Lordstown Meeting in Ohio – for the automaker really ended up closing following the negotiations.

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