Multinational automaker Stellantis will indefinitely close a factory in Illinois in February and lay off hundreds of workers, mainly because the cost of making electric vehicles is too high, the company said.
In a statement emailed to Fox Business on Friday, Stellantis noted that the industry has been adversely affected by factors including the pandemic, a global chip shortage, and increased costs related to the electrification of the auto market, which it said was the result of the latter factor. The impact is greatest.
Stellantis said it has taken some actions to stabilize production and improve efficiency at its North American plants, however, while considering other ways to optimize operations, Stellantis said it has decided to close its Belvedere, Illinois facility beginning February 28, 2023. plant, which mainly produces Jeep Grand Cherokee models.
In addition, this move by Stellantis will also result in indefinite layoffs, which are expected to last more than six months. The company said it will make every effort to place indefinitely laid off employees in full-time positions that are available.
By 2025, Stellantis will invest more than 30 billion euros to realize the electrification transformation of its car series. The company also said it expects electric vehicles to account for 100 percent of its sales in Europe and 50 percent of its U.S. sales by 2030.
