Stellantis announces plans to shutter its Illinois plant, over 1,000 employees to lose jobs

Stellantis automobile company said it would be closing down its plant in Illinois this coming February. The closure will result in job cuts that will affect around 1,350 workers.

Stellantis cited the rising costs in the electric vehicle market as the main reason for its decision to shutter its Illinois plant in the first quarter of next year. According to CNN Business, the carmaker said in a statement that it will “idle” its assembly factory located in Belvidere of the said state on Feb. 23, 2023.

As for the impending layoffs, these are expected to take place in the span of months. The company that owns well-known vehicle brands, including Jeep, Dodge, and Chrysler, said it would help the workers who lose their jobs by making an effort to move them to open positions.

It will also look for other opportunities to use its Belvidere plant for another purpose. Moreover, Stellantis added that it is taking steps to “stabilize production” and “improve efficiency” in its facilities in North American locations.

“Our industry has been adversely affected by a multitude of factors like the ongoing Covid-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market,” the Amsterdam-headquartered automaker said in a statement.

In any case, the news of its plant closure and upcoming layoffs reportedly infuriated the United Auto Workers International Union (UAW). Ray Curry, the group’s president, said they were “deeply angered” by Stellantis’ decision.

Curry stated that it is very unacceptable that the company is not assigning new products to make at the plant. The facility usually builds the company’s Jeep Cherokee units, and these will be continued to be built until its closing in February. It is not clear if Stellantis is also planning to stop the manufacturing of the Jeep Cherokee or if it will be moved to another facility.

“This is an important vehicle in the lineup, and we remain committed long term to this mid-size SUV segment,” Stellantis’ senior manager of North America media relations and content, Jodi Tinson, said in a statement.