Automaker Stellantis lays off hundreds of American workers, blaming high cost of making electric cars

Multinational automaker Stellantis is indefinitely closing an assembly plant in Illinois in February and laying off hundreds of employees, in big aspect thanks to the significant price tag of building electric powered vehicles.

Stellantis pointed out in a assertion emailed to FOX Company on Friday that the industry had been adversely influenced by factors which includes the ongoing COVID-19 pandemic, the worldwide microchip shortage and the rising charge linked to the electrification of the automotive industry, which it mentioned was the most impactful.

The automaker explained that a number of steps had been taken to stabilize manufacturing and make improvements to effectiveness at its North American amenities to “protect affordability and shopper gratification in terms of high quality.”

On the other hand, although contemplating other avenues to optimize functions, Stellantis said the selection had been created to idle the Belvedere plant beginning on Feb. 28, 2023. 

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Stellantis plant is seen in Dundee, Michigan

Engines are lifted at the Stellantis Dundee Engine Elaborate on Aug. 18, 2022, in Dundee, Michigan. (Monthly bill Pugliano/Getty Photographs / Getty Pictures)

The Stellantis logo

A Stellantis indicator outside the house organization headquarters in Auburn Hills, Michigan, June 10, 2021.  (REUTERS/Rebecca Cook dinner / Reuters Pictures)

“This difficult but required action will end result in indefinite layoffs, which are anticipated to exceed 6 months and may possibly represent a position loss below the Employee Adjustment and Retraining Notification (Warn) Act. As a final result, Warn notices have been issued to both equally hourly and salaried employees,” it claimed. “The enterprise will make each and every effort and hard work to area indefinitely laid off personnel in open up entire-time positions as they develop into out there.”

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Stellantis also observed that it is working to determine other opportunities to repurpose the facility.

There are about 1,350 personnel at the Belvedere plant, which generates the Jeep Cherokee. 

Jeep Cherokees outside the FCA Belvidere Assembly Plant

Jeep Cherokees line a parking ton outside the FCA Belvidere Assembly Plant in Belvidere, Illinois, exactly where the automobile is made, in 2018. Stellantis will shutter the plant indefinitely at the close of February.  (Chris Sweda/Chicago Tribune/Tribune News Assistance through Getty Illustrations or photos / Getty Illustrations or photos)


Stellantis reportedly told The Involved Push that that automaker would not comment on the long term of the “Cherokee nameplate.”

“This is an vital car or truck in the lineup, and we continue to be fully commited long term to this mid-dimensions SUV phase,” Stellantis spokesperson Jodi Tinson informed the company.

The Belvidere Assembly plant

FILE Picture: The Chrysler Belvidere Assembly plant in Belvidere, Illinois.  (REUTERS/Frank Polich/File Image / Reuters Photographs)

Stellantis has mentioned it will spend more than $31 billion as a result of 2025 on electrifying its auto lineup, with electric motor vehicles to make up fifty percent of its U.S. revenue by 2030.

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A spokesperson for Gov. J.B. Pritzker’s administration, Jordan Abudeyyeh, claimed a reaction crew from the state’s Department of Commerce and Economic Prospect had been assembled to assistance displaced employees obtain new work.

She reported the administration will operate with regional elected officials, community schools and some others to guarantee that suitable retraining applications are offered, and with Stellantis to come across new makes use of for the Belvidere plant.

Reuters and The Related Push contributed to this report.