Sun Sets on Jeep Cherokee & Factory in Belvidere
Stellantis just took another step towards closing its factory in Belvidere, Illinois as the transition to electric vehicles continues.
This has the potential to be a rather ugly situation. The final Jeep Cherokee SUV recently rolled out of the factory in Belvidere, Illinois. The current generation Cherokee has been out since 2014 when it replaced the Jeep Liberty in the lineup. Say what you will about the Cherokee, and sales have been declining recently. But for nearly a decade Jeep was selling about 200,000 of these little SUVs each year. But time marches on and in case you haven’t heard, the world is rushing to build all-electric vehicles. As reported by Autoblog this is causing a riff between Stellantis and the United Auto Workers (UAW)union. Because the Belvidere factory has been idled by Stellantis which indicates they plan to shut it down. Obviously, the UAW doesn’t want that.
Belvidere employes about 1,350 workers. If the plant is shut down those workers are all impacted. UAW released a statement saying that they plan to fight the decision to idle the plant. “This economic dislocation is a choice made by Stellantis to reap even higher profit,” union Vice President Rich Boyer said in a statement. “We will highlight their corporate greed to workers, community, taxpayers, and consumers.” Stellantis CEO Carlos Tavares said that the company is currently looking for solutions to the Belvidere factory situation.
The Trouble with EVs
Tavares explained that the company is transitioning to EVs. However, EVs are 40 percent more expensive to make than traditional internal combustion engine vehicles. The company can’t pass that type of increase directly to customers. Doing so would mean many people would be unable to afford new cars. But at the same time the company can’t sell EVs at a loss. So, for now the company is absorbing the additional costs. “We need to adapt to this new world,” Tavares said. “The reality of the transformation of the market is the reality that we need to face.”
UAW Viewpoint
UAW President Ray Curry calls the move to idle Belvidere an “ill-advised decision.” He believes that the move will “disrupt lives, uproot families and cause repercussions through the regional parts supply chain network.” A union strike may be on the horizon. It is reported that last week the union raised strike pay from $400 to $500 per week. Stellantis should take that as a warning that the union does not intend to let this go down without a fight.
Workers in Limbo
The last Jeep Cherokee has been built. The UAW and Stellantis can go back and forth about what to do next. But in the meantime, you have 1,350 workers with no work. What do they do now? One option is for them to relocate. But moving a family to a new city is never an easy task. The plant in Belvidere has been around since the 1960s. It is big part of the community there. And right now, there is no word on if this idle situation will be permanent or not. But something has to happen soon as the workers still have bills to pay. Hopefully a workable solution is found quickly.
Photos: Stellantis