* Auto News…

Stellantis on Friday said it will indefinitely idle its Jeep Cherokee plant in Belvidere, Ill., early next year in what the UAW blasted as a “grossly misguided” decision.

In a statement, the automaker cited a number of factors that impacted its decision.

“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. “Stellantis has taken a number of actions to stabilize production and improve efficiency at its North American facilities to preserve affordability and customer satisfaction in terms of quality. While it considers other avenues to optimize operations, Stellantis has made the decision to idle the Belvidere Assembly plant effective Feb. 28, 2023.”

The company said workers will be indefinitely laid off, although it will “make every effort” to place them in other full-time positions as they become available. Stellantis noted it is also working to “identify other opportunities to repurpose the Belvidere facility.”

* UAW’s react…

“We are all deeply angered by Stellantis’s decision to idle the Belvidere Assembly plant without a plan for future product,” says UAW Vice President and Director of the Stellantis Department Cindy Estrada. “There are many vehicle platforms imported from other countries that could be built in Belvidere with skill and quality by UAW members at Belvidere. The transition to electrification also creates opportunities for new product. Companies like Stellantis receive billions in government incentives to transition to clean energy. It is an insult to all taxpayers that they are not investing that money back into our communities.”

“We believe Stellantis is grossly misguided in idling this plant which has produced profits for the company since 1965,” adds UAW President Ray Curry. “Not allocating new product to plants like Belvidere is unacceptable. Announcing the closure just a few weeks from the holidays is also a cruel disregard for the contributions of our members from UAW Locals 1268 and 1761. We will fight back against this announcement.”

* Detroit News…

The Detroit News last year identified Belvidere among the vulnerable North American assembly plants as shifts were canceled, the second shift was cut and it faced other layoffs amid the chip shortage. Cherokee sales were down 61% in the first nine months of 2022.

* Crain’s…

The move signals the state’s worst fears may have come true: One of the two major auto assembly plants might not make the transition to electric vehicles. […]

State economic development officials have been hoping to convince Stellantis to make the transition to EVs at Belvidere and to locate a battery plant in Illinois. A year ago, Gov. J.B. Pritzker signed the Reimagining Electric Vehicles in Illinois Act (REV Illinois Act), a package of tax breaks aimed at EV companies, in a ceremony at Rock Valley College Advanced Technology Center in Belvidere.

So far those efforts haven’t paid off. Stellantis is spending $2.8 billion to retool plants in Ontario, Canada. Stellantis and Samsung announced plans to build a $2.5 billion battery plant in Kokomo, Ind., where the company already makes engines and transmissions. The battery plant will employ 1,400 workers.

Illinois recently revamped its incentives to increase the amount of money available and provide flexibility to help existing automakers.