Automaker Stellantis is laying off hundreds of American workers, blaming the high cost of making electric cars

Multinational automaker Stellantis is closing its dossier Assembly plant in Illinois In February, hundreds of workers were laid off, in large part because of the high cost of the electric car industry.

Note Stellantis In an emailed statement to FOX Business on Friday that the industry has been negatively impacted by factors including the ongoing COVID-19 pandemic, global microchip shortage and rising cost related to electrifying the auto market, which it said has been the most impactful. .

The automaker said a number of measures have been taken to stabilize production and improve efficiency North American facilities “To maintain affordability and customer satisfaction in terms of quality.”

However, while looking at other ways to improve operations, Stellantis said the decision has been made to stop work at the Belvedere plant starting February 28, 2023.

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A Stellants sign outside the company’s headquarters in Auburn Hills, Mich., June 10, 2021. (Reuters/Rebecca Cook/Reuters Photo)

“This is difficult work, but necessary It will lead to indefinite layoffs, which is expected to exceed six months and may constitute a job loss under the Worker Retraining Notice and Amendment (WARN) Act. As a result, WARN notices were issued to both hourly and salary employees. “The company will make every effort to place indefinitely laid-off employees into open, full-time positions as they become available.”

Stellantis also noted that it is working to identify other opportunities to repurpose the facility.

There are about 1,350 workers at the Belvedere plant that produces the Jeep Cherokee.

Jeep Cherokees line up in a parking lot outside the FCA Belvidere Assembly Plant in Belvidere, Illinois, where the car is being produced, in 2018. Stellantis will close the plant indefinitely at the end of February. (Chris Sueda/Chicago Tribune/Tribune News Service via Getty Images/Getty Images)

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Stellantis reportedly told the Associated Press that the automaker wouldn’t comment on the future of the “Cherokee nameplate.”

“This is an important vehicle in the lineup, and we remain committed long-term to this midsize SUV segment,” Stellants spokeswoman Jodi Tenson told the agency.

FILE PHOTO: The Chrysler Belvidere Assembly Plant in Belvidere, Illinois. (Reuters/Frank Polich/file photo/Reuters Images)

Stellantis said it will invest more than $31 billion through 2025 in electrifying its vehicle fleet, with electric vehicles to account for half of its sales in the United States by 2030.

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Pritzker administration spokesman Jordan Aboudieh said a response team from the state Department of Commerce and Economic Opportunity has been assembled to help displaced workers find new jobs.

She said the administration will work with local elected officials, community colleges and others to ensure appropriate retraining programs are available, and with Stellantis to find new uses for the Belvidere plant.

Reuters and the Associated Press contributed to this report.