The first signs of upheaval in Stellantis’ North American operations emerged as the Jeep Cherokee production line at the Belvidere, Illinois plant will pause indefinitely. The decision, reported by American outlets, will shift current manufacturing to the Toluca facility in Mexico where production costs are cheaper, making Belvidere less competitive in the modern EV era. The move affects about 1,350 workers, and analysts view it as a warning signal to labor groups and unions in the country.
Stellantis cited a combination of factors weighing on the industry, including the lingering effects of the COVID-19 pandemic and the global microchip shortage. Yet the company underscored that the rising costs related to electrifying the auto sector represent a central hurdle. The automaker pledged steps to balance production and boost efficiency across its North American plants, aiming to protect overall output while pursuing savings.
As the fourth-largest automaker globally, Stellantis confirmed the Belvidere plant will not resume normal operations in the near term. The Belvidere site began producing vehicles on February 23, and officials indicated that layoffs are expected to extend beyond six months. The company, parent to Chrysler, Dodge, and Jeep in North America, stated a commitment to exploring opportunities for reassigning laid-off workers to other roles and vacancies and to pursuing additional rehiring opportunities as they arise.
Labor representatives expressed strong disagreement with the decision. The International Federation of Auto Workers criticized the move, calling it unacceptable that the plant would not receive new models to sustain production of the Jeep Cherokee. In response, a Stellantis spokesperson emphasized the brand’s ongoing commitment to the midsize SUV segment and to long-term lineups, while noting that the company is seeking to align its production footprint with current market realities.