Stellantis on Friday mentioned it’ll indefinitely idle its Jeep Cherokee plant in Belvidere, In poor health., early subsequent yr in what the UAW blasted as a “grossly misguided” choice.

In a press release, the automaker cited a variety of components that impacted its choice.

“Our business has been adversely affected by a mess of things like the continued COVID-19 pandemic and the worldwide microchip scarcity, however essentially the most impactful problem is the growing price associated to the electrification of the automotive market,” Stellantis mentioned in a press release. “Stellantis has taken a variety of actions to stabilize manufacturing and enhance effectivity at its North American amenities to protect affordability and buyer satisfaction by way of high quality. Whereas it considers different avenues to optimize operations, Stellantis has made the choice to idle the Belvidere Meeting plant efficient Feb. 28, 2023.”

The corporate mentioned staff will likely be indefinitely laid off, though it’ll “make each effort” to position them in different full-time positions as they turn into out there. Stellantis famous additionally it is working to “establish different alternatives to repurpose the Belvidere facility.”

The way forward for the plant is prone to be among the many key points throughout subsequent yr’s contract negotiations with the UAW.

“We imagine Stellantis is grossly misguided in idling this plant which has produced earnings for the corporate since 1965,” UAW President Ray Curry mentioned in a press release. “Not allocating new product to vegetation like Belvidere is unacceptable. Saying the closure just some weeks from the vacations can be a merciless disregard for the contributions of our members from UAW Locals 1268 and 1761. We’ll battle again in opposition to this announcement.”

The plant’s destiny had been unsure for a while as staff there have confronted downtime and quite a few layoffs.

“We’re all deeply angered by Stellantis’ choice to idle the Belvidere Meeting plant with out a plan for future product,” Cindy Estrada, UAW vice chairman accountable for the Stellantis division, mentioned in a press release. “There are lots of car platforms imported from different nations that might be inbuilt Belvidere with talent and high quality by UAW members at Belvidere. The transition to electrification additionally creates alternatives for brand spanking new product. Corporations like Stellantis obtain billions in authorities incentives to transition to scrub vitality. It’s an insult to all taxpayers that they don’t seem to be investing that cash again into our communities.”