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HomeTechnologyGadgetsJeep parent company Stellantis blames EV costs for upcoming layoffs | Engadget

Jeep parent company Stellantis blames EV costs for upcoming layoffs | Engadget

Jeep guardian firm Stellantis on Friday stated it might indefinitely shut down a producing plant in Illinois and lay off roughly 1,350 staff early subsequent yr. The facility – positioned in Belvidere, a metropolis 75 miles northwest of downtown Chicago – is answerable for producing the inner combustion engine Jeep Cherokee crossover. In a press release the automaker , Stellantis blamed the price of electrifying its automobiles for the transfer.

“[The automotive industry] has been adversely affected by a large number of things like the continuing COVID-19 pandemic and the worldwide microchip scarcity, however essentially the most impactful problem is the rising price associated to the electrification of the automotive market,” the corporate stated, including that it might shutter the ability completely because it considers what to do subsequent.

United Auto Workers Local 1268 store chairman Tim Ferguson advised Reuters that firm paperwork present Stellantis plans to maneuver Cherokee manufacturing to a facility in Toluca, Mexico. “To me, there is no question about it,” he stated. “Their plan is to close this plant.” Stellantis declined to touch upon Ferguson’s allegations. “We are not commenting on the future of the Cherokee,” the corporate stated.

As , Stellantis isn’t the primary automaker in charge EVs for a latest set of layoffs. In August, Ford . “We have an opportunity to lead this exciting new era of connected and electric vehicles,” the automaker stated on the time. “Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century.”

It’s additionally value noting Friday’s announcement got here on the identical day that staff at a General Motors-LG battery cell facility in Ohio voted overwhelmingly in . Unions in , , and different elements of the world just lately requested Stellantis to boost employee wages by as a lot as 8.5 % following a yr of document international inflation. In the , Stellantis stated income grew to €42.1 billion (roughly $44 billion), a 29 % from the identical interval final yr.

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