DETROIT – Stellantis mentioned Friday that it plans to indefinitely idle a Jeep plant in Illinois, beginning early subsequent yr, to chop prices because it invests in electrical autos.

The transatlantic automaker, previously generally known as Fiat Chrysler, mentioned the plant will stop manufacturing as of Feb. 28. The greater than 1,200 employees on the facility, which produces Jeep Cherokee SUVs, can be positioned on indefinite layoffs, the corporate mentioned.

“Our business has been adversely affected by a large number of things like the continuing COVID-19 pandemic and the worldwide microchip scarcity, however probably the most impactful problem is the rising price associated to the electrification of the automotive market,” Stellantis mentioned in an emailed assertion.

The corporate described the idling as a “troublesome however mandatory motion.” It mentioned it’s “working to establish different alternatives to repurpose the Belvidere facility and has no extra particulars to share presently.”

The Illinois plant has solely been working on certainly one of three meeting shifts. It has sporadically been idled through the coronavirus pandemic and ongoing semiconductor chip scarcity.

Cherokee gross sales had been down by about 61% by the third quarter of this yr, greater than some other automobile in Jeep’s lineup.

Stellantis didn’t instantly reply for touch upon whether or not recessionary fears or the corporate’s collective bargaining subsequent yr with the United Auto Employees union performed into its determination.

In late-2018, forward of the 2019 UAW negotiations with the Detroit automakers, Normal Motors introduced plans to probably shut a number of services. Solely one of many main meeting vegetation – Lordstown Meeting in Ohio – for the automaker truly ended up closing following the negotiations.