Stellantis To Close Belvidere Assembly Plant As Switch To EV Production Looms
Citing higher cost of EV production, Stellantis CEO say no other choice but to close the Belvidere, Illinois plant.
Stellantis CEO Carlos Tavares Is in the midst of making some tough decisions. The cost of making electric cars is on the rise, and commitments have to be made. Stellantis has commitments in Kokomo, Indiana. By the tune of several billion dollars, according to the Indiana Economic Development Corp. So it makes sense for their focus to be there. Unfortunately that means their Belvidere, Illinois plant is getting the axe.
In a report from the AP, Belvidere Assembly doesn’t have a “next” car lined up to build. The factory had been making the current Jeep Cherokee up until the end of February, when production was “idled.” Tavares says that Stellantis is looking for solutions.
Workers and the labor unions aren’t taking the news lightly. Though the closure of the plant has loomed in recent months (and for several years), the United Auto Workers union has fought for workplace rights. But it’s tough to fight a plant closure. Rich Boyer, the UAW’s Vice President, sees the closure as nefarious. Boyer explains to the AP, “we will highlight their corporate greed to workers, community, taxpayers, and consumers.” In another kick in the teeth, just days ago, Stellantis announced a $155,000,000 dollar investment in another Kokomo, Indiana plant according to Inside Indiana Business.
Stellantis might actually be in a good position with the current rush to build EV cars in the US to qualify for tax incentives. With an existing plant, restructuring could be a viable solution to a medium sized manufacturer. Manufacturers like Kia/Hyundai currently have a bevy of EV cars, none of which qualify for tax credits. Even the entry level ones. So a takeover from another manufacturer would seem like the best likely outcome. Workers would be happy about that as well, so long as the company taking over makes things kosher with the UAW. And if not, the UAW has already negotiated retirement packages for the plant workforce. Relocation to other plants like Kokomo is in the works, too.
It’s almost like watching a long relationship have an ugly breakup. The plant, built by Chrysler in the 1960’s has made some memorable cars. All generations of Dodge Neon were made there, along wit the Polara, the Omni, the Dodge Dart (old and new one) and a handful of smaller Jeep models.
Photos: Stellantis
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