Stellantis to indefinitely idle Jeep plant, lay off workers to cut costs for EVs

DETROIT – Stellantis said Friday that it plans to indefinitely idle a Jeep works successful Illinois, starting aboriginal adjacent year, to chopped costs arsenic it invests successful electrical vehicles.

The transatlantic automaker, formerly known arsenic Fiat Chrysler, said the works volition cease accumulation arsenic of Feb. 28. The much than 1,200 workers astatine the facility, which produces Jeep Cherokee SUVs, volition beryllium placed connected indefinite layoffs, the institution said.

"Our manufacture has been adversely affected by a multitude of factors similar the ongoing COVID-19 pandemic and the planetary microchip shortage, but the astir impactful situation is the expanding outgo related to the electrification of the automotive market," Stellantis said successful an emailed statement.

The institution described the idling arsenic a "difficult but indispensable action." It said it is "working to place different opportunities to repurpose the Belvidere installation and has nary further details to stock astatine this time."

Stellantis did not instantly respond for remark connected whether recessionary fears oregon the company's corporate bargaining adjacent twelvemonth with the United Auto Workers national played into its decision.

Ahead of the 2018 UAW negotiations with the Detroit automakers, General Motors announced plans to perchance adjacent respective facilities. Only 1 of the large assembly plants – Lordstown Assembly successful Ohio – for the automaker really ended up closing pursuing the negotiations.