Jeep Cherokee plant to be ‘idle, not closed,’ Stellantis exec says

DETROIT — The Illinois plant that builds the Jeep Cherokee is being shut down in early 2023, but Stellantis North The us COO Mark Stewart on Monday mentioned the factory even now could have a potential.

Stewart, all through an function at a Detroit-region plant, stated the automaker is “continuing to look at what we can do to repurpose that facility — but it truly is idle, not shut.”

Stellantis intends to enable employees at the Belvidere Assembly Plant who are remaining displaced obtain other positions within the organization, Stewart reported. The business past 7 days claimed production will stop Feb. 28, with layoffs of hourly and salaried staff there expected to last at least 6 months.

“We’re also working jointly with the UAW, and also with the state and neighborhood governing administration, to make absolutely sure that folks that are on layoff come across roles,” he explained to reporters. “We have several roles in this article in southeast Michigan and Ohio and Indiana as nicely, so that people who want to go to one more site during that time to work, those people work opportunities will be available for those people folks. It is really genuinely essential for us as properly as to the UAW that we find roles for individuals persons.”

The plant, about 70 miles northwest of Chicago, has appeared to be on shaky footing for some time after usually going through downtime and layoffs. Its long run is certain to be a stage of discussion in the course of future year’s agreement negotiations among the UAW and the Detroit 3. UAW officers final 7 days identified as Stellantis’ decision to halt output “grossly misguided.”

Stellantis cited a selection of factors powering the decision, which includes the COVID-19 pandemic, world-wide microchip scarcity, and fees associated to building and constructing electric powered motor vehicles.

It was announced a 7 days just after Illinois legislators accepted expanding the tax incentives offered to retool the plant for EV generation. The invoice is an amendment to the Reimagining Electric powered Vehicles Act, which Gov. JB Pritzker signed in Belvidere in November 2021.

U.S. income of the Cherokee plunged far more than 60 per cent to below 90,000 past year from the nameplate’s peak of about 240,000 in 2018. They fell an additional 60 p.c in the to start with nine months of 2022. The Cherokee is the plant’s only item and is not built wherever else.

Likewise, work at the plant has dropped to about 1,350 from far more than 5,000 staff in 2019. Stellantis removed the plant’s 2nd every day production change past year.

The plant applied to be the premier employer in the spot all around Rockford, Ill., but now ranks 10th, just behind Walmart, according to economic improvement officers.