Skip to content

Stellantis to idle Belvidere assembly plant, lay off workers

Stellantis says Friday that its Belvidere Assembly Plant will be idled effective Feb. 28 as the automaker “considers other avenues to optimize operations.”

Associated Press
Associated Press
| 2 min read
Stellantis to idle Belvidere assembly plant, lay off workers

Embed from Getty Images

BELVIDERE, Ill. (AP) — An auto plant in northern Illinois is expected to close early next year with hundreds of workers being laid off due to the challenge of rising costs related to the electric vehicle market and other factors.

Stellantis says Friday that its Belvidere Assembly Plant will be idled effective Feb. 28 as the automaker “considers other avenues to optimize operations.”

“This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months,” Stellantis said in a statement, adding that notices have been sent to hourly and salaried workers.

About 1,350 people are employed at the plant, which produces the Jeep Cherokee.

“The company will make every effort to place indefinitely laid off employees in open full-time positions as they become available,” it said.

Belvidere is about 70 miles (112 kilometers) northwest of Chicago.

In 2016, then-Fiat Chrysler announced it would invest $350 million in the plant to produce the Jeep Cherokee. Production on the Cherokee began there in 2017.

A Stellantis spokeswoman told The Associated Press on Friday that the automaker is not commenting on the future of the “Cherokee nameplate.”

“This is an important vehicle in the lineup, and we remain committed long term to this mid-size SUV segment,” Jodi Tinson said in an email.

Stellantis, which also pointed to the coronavirus pandemic and global microchip shortage as challenges to the auto industry, said it is working to identify opportunities to repurpose the Belvidere facility.


Subscribe to the Chicago Journal


The Chicago Journal needs your support.

At just $20/year, your subscription not only helps us grow, it helps maintain our commitment to independent publishing.

CLICK HERE TO SUBSCRIBE

If you're already a subscriber and you'd like to send a tip to continue to support the Chicago Journal, which we would greatly appreciate, you can do so at the following link:

Send a tip to the Chicago Journal


Subscribe to the Chicago Journal

Illinois BusinessIllinois NewsNewsBusiness

Associated Press Twitter

News and content from The Associated Press, which has been covering the world's most important stories since 1846.


Related Posts

Fire causes $1.25m in damage at historic Illinois mansion

A fire at the historic Haley Mansion in Joliet caused $1.25 million in damage, authorities said.

Fire causes $1.25m in damage at historic Illinois mansion

Chicago announces best monikers in snowplow naming contest

Chicago city staff chose 50 finalists and the mayor's office received more than 80,000 votes. Staff ultimately chose seven winners.

Chicago announces best monikers in snowplow naming contest

Daughter charged after mom's body found in Chicago freezer

A Chicago woman has been accused of keeping her mother's dead body in a freezer for nearly two years while living in a nearby apartment.

Daughter charged after mom's body found in Chicago freezer