Stellantis to idle Illinois plant, lay off greater than 1,000 staff, citing rising prices for EVs

Stellantis to idle Illinois plant, lay off more than 1,000 workers, citing rising costs for EVs


New York

Stellantis is shuttering its Illinois plant in February resulting in indefinite layoffs for 1,350 employees, the company said in a statement, citing increasing costs in the electric vehicle market.

“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,” Stellantis said in a statement. The company said it is taking steps “stabilize production” and “improve efficiency” in its North American facilities.

The European carmaker said it will “idle” the assembly plant in Belvidere, Illinois on February 23 and said the layoffs are expected to exceed six months. Stellantis, the parent company of Chrysler, Dodge and Jeep, said it will “make every effort” to place…