Stellantis on Friday explained it will indefinitely idle its Jeep Cherokee plant in Belvidere, Ill., early following year in what the UAW blasted as a “grossly misguided” final decision.
In a statement, the automaker cited a range of components that impacted its choice.
“Our marketplace has been adversely impacted by a multitude of components like the ongoing COVID-19 pandemic and the global microchip scarcity, but the most impactful challenge is the expanding charge connected to the electrification of the automotive market,” Stellantis said in a assertion. “Stellantis has taken a variety of steps to stabilize generation and boost performance at its North American amenities to protect affordability and buyer pleasure in conditions of high-quality. While it considers other avenues to optimize operations, Stellantis has designed the final decision to idle the Belvidere Assembly plant effective Feb. 28, 2023.”
The enterprise said staff will be indefinitely laid off, despite the fact that it will “make every single effort and hard work” to position them in other complete-time positions as they grow to be offered. Stellantis famous it is also doing work to “identify other possibilities to repurpose the Belvidere facility.”
The upcoming of the plant is probable to be amongst the important problems in the course of next year’s agreement negotiations with the UAW.
“We feel Stellantis is grossly misguided in idling this plant which has generated earnings for the business considering that 1965,” UAW President Ray Curry said in a statement. “Not allocating new product or service to crops like Belvidere is unacceptable. Asserting the closure just a couple months from the holiday seasons is also a cruel disregard for the contributions of our users from UAW Locals 1268 and 1761. We will battle back again versus this announcement.”
The plant’s destiny had been unsure for some time as staff there have faced downtime and various layoffs.
“We are all deeply angered by Stellantis’ conclusion to idle the Belvidere Assembly plant with out a approach for long term item,” Cindy Estrada, UAW vice president in charge of the Stellantis section, claimed in a statement. “There are numerous car or truck platforms imported from other international locations that could be designed in Belvidere with talent and excellent by UAW members at Belvidere. The changeover to electrification also produces options for new products. Businesses like Stellantis obtain billions in govt incentives to transition to clear energy. It is an insult to all taxpayers that they are not investing that cash back into our communities.”