Stellantis on Friday stated it will indefinitely idle its Jeep Cherokee plant in Belvidere, Unwell., early upcoming year in what the UAW blasted as a “grossly misguided” selection.
In a statement, the automaker cited a number of variables that impacted its conclusion.
“Our sector has been adversely afflicted by a multitude of things like the ongoing COVID-19 pandemic and the world microchip lack, but the most impactful challenge is the expanding expense related to the electrification of the automotive current market,” Stellantis claimed in a statement. “Stellantis has taken a variety of steps to stabilize creation and strengthen performance at its North American amenities to preserve affordability and client pleasure in terms of excellent. Although it considers other avenues to improve functions, Stellantis has designed the decision to idle the Belvidere Assembly plant helpful Feb. 28, 2023.”
The organization said staff will be indefinitely laid off, even though it will “make each individual effort” to location them in other complete-time positions as they turn into obtainable. Stellantis famous it is also doing the job to “determine other opportunities to repurpose the Belvidere facility.”
The long term of the plant is likely to be among the the key issues throughout next year’s deal negotiations with the UAW.
“We imagine Stellantis is grossly misguided in idling this plant which has generated earnings for the business due to the fact 1965,” UAW President Ray Curry said in a statement. “Not allocating new merchandise to crops like Belvidere is unacceptable. Saying the closure just a several weeks from the holidays is also a cruel disregard for the contributions of our customers from UAW Locals 1268 and 1761. We will fight again towards this announcement.”
The plant’s fate had been uncertain for some time as employees there have faced downtime and various layoffs.
“We are all deeply angered by Stellantis’ selection to idle the Belvidere Assembly plant with no a prepare for long run item,” Cindy Estrada, UAW vice president in cost of the Stellantis department, claimed in a assertion. “There are several motor vehicle platforms imported from other countries that could be constructed in Belvidere with skill and quality by UAW members at Belvidere. The changeover to electrification also produces chances for new solution. Organizations like Stellantis receive billions in authorities incentives to changeover to cleanse electricity. It is an insult to all taxpayers that they are not investing that cash back into our communities.”
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