Automaker Stellantis is laying off hundreds of American workers, blaming the high cost of making electric cars

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Multinational automaker Stellantis is closing an assembly plant in Illinois indefinitely in February and laying off hundreds of workers, largely due to the high cost of manufacturing electric vehicles.

Stellantis noted in a statement emailed to FOX Business on Friday that the industry has been impacted by factors including the ongoing COVID-19 pandemic, global microchip shortages and rising hardware costs. electrification of the automotive market, which she said was the most impactful.

The automaker said a number of steps have been taken to stabilize production and improve efficiency at its North American facilities to “preserve affordability and quality customer satisfaction.”

However, while considering other ways to optimize operations, Stellantis said the decision was made to idle the Belvedere plant from February 28, 2023.

BLUE ABRON LAYING 10% OF THE COMPANY’S WORKFORCE

Engines are lifted at the Stellantis Dundee Engine Complex on August 18, 2022 in Dundee, Michigan. (Bill Pugliano/Getty Images/Getty Images)

A Stellantis sign outside the company’s headquarters in Auburn Hills, Michigan on June 10, 2021. (REUTERS/Rebecca Cook/Reuters Photos)

“This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months and may constitute loss of employment under the Worker Adjustment and Retraining Notification Act (WARN). As a result, WARN notices have been issued to the times employed,” he said. “The company will make every effort to place laid-off indeterminate employees into open full-time positions as they become available.”

Security ticker Last modified Modification %STLA STELLANTIS NV 14.45 -0.40 -2.69%

Stellantis also noted that it is working to identify other opportunities to repurpose the facility.

There are approximately 1,350 workers at the Belvedere plant, which produces the Jeep Cherokee.

Jeep Cherokees line a parking lot outside the FCA Belvidere assembly plant in Belvidere, Illinois, where the vehicle is produced, in 2018. Stellantis will close the plant indefinitely at the end of February. (Chris Sweda/Chicago Tribune/Tribune News Service via Getty Images/Getty Images)

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Stellantis reportedly told The Associated Press that the automaker would not comment on the future of the “Cherokee nameplate.”

“This is an important vehicle in the lineup, and we remain committed to this mid-size SUV segment for the long term,” Stellantis spokesperson Jodi Tinson told the agency.

FILE PHOTO: The Chrysler Belvidere Assembly Plant in Belvidere, Illinois. (REUTERS/Frank Polich/File Photo/Reuters Photos)

Stellantis said it will invest more than $31 billion through 2025 in electrifying its vehicle lineup, with electric vehicles accounting for half of its U.S. sales by 2030.

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A spokesman for Gov. JB Pritzker’s administration, Jordan Abudeyyeh, said a state Department of Commerce and Economic Opportunity response team has been assembled to help displaced workers find new jobs. .

She said the administration will work with local officials, community colleges and others to ensure appropriate recycling programs are available, and with Stellantis to find new uses for the Belvidere plant.

Reuters and The Associated Press contributed to this report.

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