Stellantis closes its Illinois plant and will move production to Mexico

First budding closure of a plant in the universe Stellar. The multinational that pilots Carlos Tavares has decreed an indefinite stoppage of activity at the Jeep plant in Belvidere, Illinois (USA), where the Cherokee SUV is manufactured, due to the high manufacturing costs of future electric vehicles. According to the American press, the company will transfer current production to the factory that the group has in Toluca (Mexico), much more competitive in costs than Belvidere’s. The decision affects 1,350 workers and analysts interpret the closure as a warning to boaters to the country’s unions.

“Our industry has been adversely affected by many factors, including the ongoing COVID-19 pandemic and the global shortage of microchips, but the most impactful challenge is the rising cost related to electrifying the automotive market,” Stellantis said in a statement. . The company said it was taking steps to “stabilize production” and “improve efficiency” at its North American plants.

The world’s fourth largest car manufacturer acknowledged that “will interrupt” activity at the Belvidere plant on February 23 and that he expects the layoffs to take more than six months. Stellantis, the North American parent of Chrysler, Dodge and Jeep, said it “will do everything possible” to place the laid off employees in vacant positions and is looking for other opportunities to rehire the Belvidere plant.

The International Federation of Auto Workers responded that it was “deeply outraged” by the decision. The group’s president, Ray Carey, said it was “unacceptable” for Stellantis not to assign new models to the center, where the car is assembled. Jeep Cherokee. “This is an important vehicle in the lineup, and we remain committed to the midsize SUV segment for the long term,” Jodi Tenson, a spokeswoman for Stellantis, said in a statement.

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