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The most recent Jeep Cherokee completed production at Stellantis’ Belvidere Assembly on Tuesday, potentially marking the conclusion of the facility’s nearly half-century tenure and becoming a focal point for future negotiations. The assembly plant in Illinois had been operational since 1965 and was last responsible for manufacturing the Jeep Cherokee, which was reduced to just two variants in 2023 before being discontinued this year.
Stellantis announced the indefinite idling of the plant and its 1,350 employees, pending a decision on the facility’s fate. In a statement, Stellantis CEO Carlos Tavares expressed the company’s commitment to finding solutions for the plant and its workforce, citing the increasing costs associated with manufacturing and selling electric vehicles as drivers of a “new era.”
He conveyed to the press, “The changing dynamics of the market are a reality we must confront. This is a global challenge, not confined to Belvidere alone.”
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The closure of the plant is expected to draw the spotlight on Stellantis during its upcoming negotiations with the United Auto Workers later this year. The union, representing thousands of auto workers, will be renegotiating contracts with all of the major Detroit automakers, and Stellantis will be pressed by the UAW to justify the closure of plants despite exceeding profit expectations last year.
UAW Vice President Rich Boyer criticized Stellantis’ decision, stating to The Associated Press, “This economic upheaval is a deliberate move by Stellantis to maximize profits even further. We will expose their corporate avarice to workers, the community, taxpayers, and consumers.”
With the Belvidere plant now inactive and no immediate plans for new vehicle production, the workers within the surrounding 25,000-strong town face an uncertain future. The UAW noted that approximately 2,300 workers are impacted by the plant’s closure, with some opting for voluntary severance, early retirement packages, or relocation options.
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