Stellantis, the automaker behind Fiat, Jeep and Dodge has announced to lay off 1,200 workers and shut a key Jeep Cherokee plant in the US in February. The company described the idling of its Illinois plant as a "difficult but necessary action" The United Auto Workers' organisation has described the move as "grossly misguided" and "unacceptable"
Stellantis, the carmaker behind Fiat, Jeep, and Dodge, has stated that it would lay off 1,200 people and close a key Jeep Cherokee facility in the United States in February in order to focus more on electric vehicles (EVs). According to CNBC, Stellantis stated that the facility, which manufactures the Jeep Cherokee SUV, will halt operations on February 28.
“Our sector has been harmed by a variety of issues, including the ongoing Covid-19 epidemic and the worldwide microprocessor scarcity, but the most significant obstacle is the rising cost of electrification of the automobile market,” Stellantis said in a statement.
1,200 Job Cuts
The corporation will close the Jeep Cherokee assembly plant in Illinois, resulting in the loss of 1,200 jobs. Cherokee sales were down roughly 61% in the third quarter of this year. Stellantis and Samsung intend to invest up to $3 billion on a battery facility in Indiana. On addition, the carmaker is investing $4.1 billion with LG in a comparable factory in Canada. The idling of its Illinois factory was regarded as a “difficult but necessary step” by the firm.
The EV Era
Stellantis stated that it is “trying to seek alternative options to reuse the Belvidere plant” and that “there are no other information to provide at this time.”
According to the newspaper, the United Auto Workers union has called the action “grossly misplaced” and “inappropriate,” especially during the holiday season.
Stellantis is a worldwide automobile and mobility provider that provides clean, connected, economical, and safe transportation options. The breadth of our famous brand portfolio, the variety and enthusiasm of our employees, and our deep roots in the communities in which we operate are the sources of our company’s strength.
Stellantis is in charge of the manufacture of 16 distinct car brands all around the world. Some of these brands are accessible in the United States, including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, Mopar, and RAM.
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