Come February 28, 2023, the Stellantis facility in Belvidere, Illinois, the production site of the Jeep Cherokee, will cease operations indefinitely. Numerous of the plant’s 1,350 workers are expected to encounter long-term furloughs, as disclosed by a statement released by Stellantis to WIFR (h/t to Jalopnik), with the potential duration exceeding six months.
The suspension of operations at the plant is attributed to various factors. Challenges in the supply chain and the dwindling sales of the Jeep Cherokee, which have plummeted by 61% year-to-date, have significantly contributed. However, the primary cause is the transition of the brand to electric vehicles. Stellantis currently lacks a substantial electric vehicle portfolio and has committed to investing $31.6 billion in electrifying its range by 2025.
Moreover, Stellantis has expressed its intention to endeavor in relocating displaced employees to full-time roles within the organization, although there is no assurance of continued employment. As anticipated, the United Automobile Workers (UAW) union is displeased.
Cindy Estrada, the UAW Vice President and Director of the Stellantis Department, conveyed their deep frustration regarding Stellantis’ decision to halt operations at the Belvidere Assembly plant without outlining future product plans. She remarked on the potential for producing various vehicle platforms at Belvidere that could be managed by skilled UAW members. The shift towards electrification also presents opportunities for new product lines. Companies like Stellantis receive substantial government incentives to transition to eco-friendly energy sources. It stands as a letdown to taxpayers that this money is not reinvested in our communities.
The future of the Jeep Cherokee post shutdown of production at the conclusion of February remains uncertain. Nonetheless, Tim Ferguson, shop chairman for UAW Local 1268, as per a report by Reuters claimed that Cherokee production is slated to be relocated to Stellantis’ Toluca, Mexico facility. We have initiated contact with Stellantis and will provide an update here once we receive a response.
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