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Chrysler and Jeep father or mother Stellantis (NYSE:STLA) is because of pause manufacturing at its Illinois meeting plant beginning in February, in response to the corporate.
The corporate blamed elevated prices and the impacts of provide chain snarls for the plan to idle the manufacturing facility starting in late February. A Stellantis (STLA) spokesperson added that the shift to EVs throughout the business has been burdensome on the underside line.
“Stellantis has taken numerous actions to stabilize manufacturing and enhance effectivity at its North American amenities to protect affordability and buyer satisfaction when it comes to high quality,” an announcement emailed to SeekingAlpha learn. “Whereas it considers different avenues to optimize operations, Stellantis has made the choice to idle the Belvidere (Illinois) Meeting plant efficient Feb. 28, 2023.”
The plant presently employs about 1,200 staff. In accordance with the Chicago Tribune, the plant employed over 5,000 staff to primarily work on Jeep manufacturing as of the shut of 2019. Because the outbreak of COVID-19, the headcount on the manufacturing facility has been steadily whittled down in a collection of mass layoffs.
The United Auto Employees rapidly voiced their displeasure with the choice.
“We’re all deeply angered by Stellantis’s choice to idle the Belvidere Meeting plant with out a plan for future product,” UAW Vice President and Director of the Stellantis Division Cindy Estrada mentioned. “The transition to electrification additionally creates alternatives for brand spanking new product. Firms like Stellantis obtain billions in authorities incentives to transition to wash vitality. It’s an insult to all taxpayers that they don’t seem to be investing that cash again into our communities.”
Shares of Stellantis fell 2.46% shortly earlier than the market shut on Friday.
Learn extra on the UAW’s victory in a vote to unionize at a key GM battery plant on Friday.
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