Multinational automaker
Stellantis confirmed plans to close its production plant in Illinois on February 28 next year.
Fox Business reports that this move leads the company to lay off about 1,350 employees.
“This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months and may constitute a job loss under the Worker Adjustment and Retraining Notification (WARN) Act. As a result, WARN notices have been issued to both hourly and salaried employees. The company will make every effort to place indefinitely laid off employees in open full-time positions as they become available.”
Stellantis
Why is this decision necessary?
The automaker claims that this major decision is greatly influenced by the adverse effects of the COVID-19 pandemic, the microchip shortage worldwide, and the expense of
EV production. That said, the company has no choice but to close the Belvedere plant where the Jeep Cherokee SUV is produced. It is also worth noting that the Jeep Cherokee sales decline by 61% through Q3 2022.
Nonetheless, Stellantis stated that it is thinking of repurposing the facility. Governor J.B. Pritzker’s administration will help the automaker and offer retraining programs for Stellantis’ employees.
Furthermore, Stellantis is pushing for the production of its mid-size SUV, despite this unfortunate news.
“This is an important vehicle in the lineup, and we remain committed long term to this mid-size SUV segment.”
Stellantis spokesperson Jodi Tinson
Watching the automaker’s future moves would be exciting as it is a very promising brand. In fact, it plans to invest over $31 billion in its
electric vehicle portfolio through 2025. Apart from that, it aims to have 50% of its
US sales be electric.
