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Jeep-maker Stellantis is blaming the higher cost of making EVs for having to halt production at an Illinois plant and laying off 1,350 workers
Story by [email protected] (Samantha Delouya) • Yesterday 5:15 PM
Worker at the Stellantis plant in Belvidere, Illinois in 2012 Scott Olson/Getty Images© Provided by Business Insider
- Jeep maker Stellantis confirmed it will idle an assembly plant in Illinois beginning in February 2023.
- The company attributed the closure to the "increasing cost related to the electrification of the automotive market."
- Reuters reports that about 1,350 workers would be laid off as a result.
Meet 8 new cars from the LA Auto Show, where the electric future is rolling out to the public
- After a three-year pandemic hiatus, the in-person version of the Los Angeles Auto Show has returned.
- The show featured a slew of electrified vehicles and the presence of charging companies.
- As the show opens to the public, take a look at the best of what's new.
- This article is part of the Ride Along series, a collection of stories recapping some of the biggest auto shows around the country.
It's not hard to see why sustainability was the topic of the day in LA. California is home to around 40% of the nation's zero-emissions vehicles and its push to outlaw the sale of gasoline cars by 2035 is one of many factors encouraging the industry to plug in.
The City of Angels show featured not only a slew of electrified vehicles, but the presence of companies like Electrify America, EVgo, and Blink, which operate the charging networks that will keep all these new cars juiced up. Meanwhile, the ordinary combustion cars that supply most of the profits for these carmakers sat quietly around the show floor, a reminder of the long shadow of our petroleum present.
Like the industry itself, the traditional car show is also in flux. Many car brands have taken Tesla's lead by introducing products at their own launch events rather than sharing the stage at an industry show. As a result, LA 2022 featured a handful of global or North American debuts, but nothing new from many car companies, including giants like Ford and GM.
As the show opens to the public, take a look at the best of what's new.
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Traditional automobile companies are experiencing growing pains as they transition toward producing more electric vehicles.
Stellantis, which oversees the production of 16 automobile brands, including Jeep, Chrysler, and Dodge, confirmed to Insider that it plans to idle an assembly plant in Belvidere, Illinois, beginning in February 2023.
"Our industry has been adversely affected by a multitude of factors like the ongoing COVID-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market," the company said in a statement.
Stellantis also said the action would result in "indefinite layoffs." The plant closure was first reported by Reuters, which reports that the plant employs about 1,350 workers.
The shutdown comes as more car companies pledge to prioritize producing electric vehicles over gas-powered vehicles to comply with new emissions regulations.
Last month, the EU reached a deal to require automakers to reach a zero-emission target by 2035, and in the US, more than one-third of states have signaled that they plan to ban the sale of new gasoline-powered cars by the same year.
In July 2021, Stellantis said 100% of its sales in Europe and 50% of sales in the US would be of battery electric vehicles by the end of 2030.
There are no current plans to resume operations at its Belvidere plant, which produces Jeep Cherokee SUVs.
"The company also is working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time," Stellantis told Insider.
