Stellantis to idle Illinois assembly plant, lay off workers | 24CA News

An auto plant in northern Illinois is anticipated to shut early subsequent yr with a whole lot of staff being laid off as a result of problem of rising prices associated to the electrical car market and different components.

Stellantis says Friday that its Belvidere Assembly Plant will likely be idled efficient Feb. 28 because the automaker “considers other avenues to optimize operations.”

“This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months,” Stellantis stated in an announcement, including that notices have been despatched to hourly and salaried staff.

About 1,350 individuals are employed on the plant, which produces the Jeep Cherokee.

“The company will make every effort to place indefinitely laid off employees in open full-time positions as they become available,” it stated.

Belvidere is about 112 kilometres northwest of Chicago.

In 2016, then-Fiat Chrysler introduced it might make investments $350 million within the plant to supply the Jeep Cherokee. Production on the Cherokee started there in 2017.

A Stellantis spokeswoman advised The Associated Press on Friday that the automaker isn’t commenting on the way forward for the “Cherokee nameplate.”

“This is an important vehicle in the lineup, and we remain committed long term to this mid-size SUV segment,” Jodi Tinson stated in an electronic mail.

Stellantis, which additionally pointed to the coronavirus pandemic and world microchip scarcity as challenges to the auto business, stated it’s working to establish alternatives to repurpose the Belvidere facility.