Stellantis closes Illinois plant and will shift production to Mexico

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The first budding close of a plant in the Stellantis universe. piloted multinational Carlos Tavares The Jeep plant in Belvidere, Illinois (USA), where the Cherokee SUV is produced, has decided to cease operations indefinitely due to the high production costs of future electric vehicles. According to the American press, the company will transfer its current production to the factory owned by the group in Toluca (Mexico), much more competitive More expensive than Belvidere’s. The decision affects 1,350 workers and analysts interpret the closure as a warning to seafarers and unions in the country.

“Our industry has been negatively impacted by many factors, including the ongoing COVID-19 pandemic and the global microchip shortage, but the most pressing challenge is the rising cost associated with electrifying the automotive market,” Stellantis said in a statement. said. The company said it is taking steps to “balance production” and “increase efficiency” at its North American facilities.

The world’s fourth largest automaker admitted it “will cut” He said the Belvidere plant started operations on February 23 and expects the layoffs to last more than six months. Stellantis, the North American parent company of Chrysler, Dodge and Jeep, said it will “do everything possible” to fill laid-off employees into vacancies and is looking for other opportunities to rehire the Belvidere plant.

The International Federation of Auto Workers said it was “deeply outraged” by the decision. Ray Carey, chairman of the group, said it was “unacceptable” for Stellantis to not assign new models to the center where the car was assembled. jeep cherokee. “This is a key vehicle in the lineup and we will remain committed to the midsize SUV segment over the long term,” Stellantis spokesperson Jodi Tenson said in a statement.

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