Home Auto Jeep Employees Weigh Alternatives as Belvidere Factory Closes

Jeep Employees Weigh Alternatives as Belvidere Factory Closes

The Stellantis Belvidere Assembly Plant in Illinois has been in limbo since December 2020, when the automaker announced its intention to idle the site at the end of February. This decision has left the 1,150 or so workers at the plant uncertain of their future. The plant, which has been an economic pillar in the region since 1965, has been struggling in recent years due to frequent downtime and layoffs. The chip shortage and falling sales since the plant started producing the Jeep Cherokee in 2017 have only added to the plant’s woes.

The decision to idle the plant has been met with surprise from Illinois Governor JB Pritzker, who had been angling for Stellantis to assign an electric vehicle to Belvidere for the past year. In December, Pritzker signed an amendment to the Reimagining Electric Vehicles in Illinois Act that expanded the tax incentives available for automakers to retool plants for EV production. Stellantis COO Mark Stewart has indicated that the Belvidere plant could still have a future, and the state has come back to the corporation with another incentive.

The shift to electric vehicles is part of a larger industrywide transition, and Stellantis is in the midst of an ambitious schedule to launch more than 75 battery-electric vehicles globally by 2030. The automaker’s first BEV models will begin rolling out in the US in 2023, with the Ram ProMaster van launching this year and the 1500 REV electric pickup in 2024. Jeep is also stepping into the EV space next year with a trail-ready Wrangler-inspired Recon and its stylish Wagoneer S.

The big problem with electrification is making it affordable, which Stellantis CEO Carlos Tavares has said needs to be absorbed in a way or another. UAW Local 1268 President Kevin Logan sees the shift to EVs as bittersweet, as electric models need fewer parts than traditional internal combustion engine vehicles and won’t require as many workers. He is also concerned about the charging infrastructure and the ability of power grids to support an influx of EVs.

UAW Region 4 Director Brandon Campbell believes Belvidere has the flexibility to sustain a competitive operation, and if Stellantis were to assign a new product to the plant, the workers would be able to produce a significant amount of quality. Belvidere Mayor Clint Morris believes a jolt of federal money may be needed to close the deal, and UAW President Ray Curry has been in contact with President Joe Biden and his staff to pressure Stellantis to direct new product to Belvidere and to steer federal incentives toward the efforts to keep the plant open.

The situation for the workers at the Belvidere Assembly Plant is creating an unfathomable amount of stress and uncertainty. They are simply looking for an opportunity to provide for themselves and their families, and the shift to electric vehicles may provide a cleaner environment and good-paying jobs for Belvidere. It is now up to Stellantis to decide whether they will accept the incentive offered by the state and assign a new product to the plant, or if they will continue to use the situation as a negotiating tactic. The fate of the Belvidere Assembly Plant and its workers hangs in the balance.

NO COMMENTS

Leave a ReplyCancel reply

Exit mobile version