undreds of workers are expected to be laid off when automaker Stellantis closes an assembly plant in northern Illinois early next year, citing the challenge of rising costs of electric vehicle production.
The company, which employs about 1,350 workers at the plant in Belvidere, Illinois, said the action will result in indefinite layoffs and it may not resume operations as it considers other options.
Stellantis said the industry ‘has been adversely affected by a multitude of factors like the ongoing COVID-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market.’
The Belvidere plant, produces the Jeep Cherokee SUV, will be idle starting on February 28, 2023, Stellantis said. The plant in Toluca, Mexico will now produce the vehicles.
‘This difficult but necessary action will result in indefinte layoffs, which are expected to exceed six months and may constitute a job loss under the Worker Adjustment and Retraining Notification (WARN) Act. As a result, WARN notices have been issued to both hourly and salaried employees,’ the company said.
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