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Bloomberg
Stellantis NV plans to idle a Jeep-making factory in Belvidere, Illinois, citing challenges such as cost burdens due to the shift towards electrification of more models.
The automaker said in a statement that the “difficult but necessary action,†effective Feb. 28, will result in layoffs of an unspecified number of workers, which will likely extend for more than six months.
“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.
Stellantis and other carmakers are spending billions to electrify their lineups with new battery factories and vehicle assembly plants, leaving the future murky for facilities like Belvidere that specialize in vehicles with internal combustion engines.