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Jeep-Maker Stellantis lays off 1,350 workers and blames electric vehicles

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  • Jeep maker Stellantis has confirmed it will idle an assembly plant in Illinois starting in February 2023.
  • The company attributed the shutdown to “increasing costs associated with the electrification of the automotive market”.
  • Reuters reports that around 1,350 workers would be made redundant as a result.

Traditional automakers are experiencing growing pains as they shift to producing more electric vehicles.

Stellantis, which oversees production for 16 auto brands including Jeep, Chrysler and Dodge, confirmed to Insider that it plans to idle an assembly plant in Belvidere, Illinois, starting in February 2023.

“Our industry has been affected by a multitude of factors such as the current COVID-19 pandemic and the global shortage of microchips, but the most significant challenge is the rising costs associated with the electrification of the automotive market,” the company said in a statement. .

Stellantis also said the action would result in “indefinite layoffs.” The plant’s closure was first reported by Reuters, which reports that the plant employs around 1,350 workers.

The shutdown comes as more automakers pledge to prioritize the production of electric vehicles over gasoline-powered vehicles in order to comply with new emissions regulations.

Last month, the EU struck a deal to force automakers to reach zero emissions by 2035, and in the US, more than a third of states have signaled they plan to ban selling new gasoline cars by the same year.

In July 2021, Stellantis declared that 100% of its sales in Europe and 50% of sales in the United States would be battery electric vehicles by the end of 2030.

There are currently no plans to resume operations at its Belvidere plant, which produces Jeep Cherokee SUVs.

“The company is also working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time,” Stellantis told Insider.

Have you been laid off due to the closure of the Belvidere factory? Contact Samantha Delouya at sdelouya@insider.com.

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