Stellantis Set to Idle Belvidere Plant

A Stellantis spokesperson cited a range of factors for the idling, such as fallout from the Covid-19 pandemic and the global microchip shortage.

However, the main reason is related to the switch to electric vehicles in the market.

“The most impactful challenge is the increasing cost related to the electrification of the automotive market,” the spokesperson said in a statement.  

She added that, “This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months and may constitute a job loss under the Worker Adjustment and Retraining Notification (WARN) Act.”

WARN notices have been issued to both hourly and salaried employees, the spokesperson said, noting that the company is working to identify other opportunities to repurpose the Belvidere facility. 

Regarding a Reuters report from a United Auto Workers (UAW) union source that production was moving to Mexico, the spokesperson said: “Stellantis will continue to build the Cherokee at Belvidere Assembly until the plant is idled. … We don’t have any announcements to make about the future of the Cherokee nameplate at this time.” 

The plant produced 58,521 vehicles in 2021 compared to nearly 140,000 vehicles in 2020, according to figures provided by the spokesperson.

A rough rule of thumb is that the average passenger vehicle uses one ton of steel.

By Ethan Bernard, Ethan@Steelmarketupdate.com