BELVIDERE — The future of the Belvidere Assembly Plant remains in flux as Stellantis announced yet another production shutdown earlier this month due to what the company called an unprecedented global microchip shortage.

“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” company spokeswoman Ann Marie Fortunate said in an email.

The Belvidere plant has seen its workforce, which topped 5,000 as recently as 2019, drop to less than 1,500 today amid faltering Jeep Cherokee sales, which declined 34% in 2021.

Stellantis recently announced plans to eliminate more jobs this month in order to operate the plant in a more sustainable manner.

The next round of layoffs, the company said, will be achieved through a combination of retirement packages offered to eligible union staff as well as reductions of both hourly and salaried employees.

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Production was down at the Belvidere Assembly Plant nearly 40% of this year’s first quarter, which is taking its toll on the plant’s supplier companies, according to Belvidere Mayor Clint Morris.

"It's unfortunate because as Stellantis goes, they go," Morris said. "Everything from stamping to upholstery. The suppliers have definitely made cutbacks and they're feeling the strain of a smaller workforce at the assembly plant."

Fewer employees at the assembly plant is also having an impact on city services, Morris said.

"They're (Stellantis) one of our largest water users and when they have three shifts running, they obviously use a lot more water," he said. "When we have a bulk user like that, it allows us to keep our rates low. So, them cutting back obviously has an effect on some of our infrastructure and some of the services we provide."

Despite the uncertainty, community leaders remain optimistic about the plant’s future and the possibility that Stellantis will eventually retool the plant to assemble electric vehicles or a hybrid model.

“We are in constant conversations with Stellantis,” said Growth Dimensions executive director Pam Lopez-Fettes. “What I would like to see assembled in Belvidere is a hybrid vehicle. We would also like to see a battery plant here to supply batteries for the electric vehicles or the hybrid vehicles to the assembly plant.”

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The Belvidere Assembly Plant opened in July, 1965 when it operated under the Chrysler banner. Workers at the plant have assembled everything from the Dodge Neon and Chrysler New Yorker to the Jeep Compass and Jeep Patriot models.

The Illinois General Assembly approved last year what is known as the Reimagining Electric Vehicles Act which provides tax credits for companies that manufacture electric vehicles, parts and batteries in Illinois.

While no decision has been announced regarding future production, Morris remains optimistic that vehicles will be continue to be assembled in Belvidere for the foreseeable future given the condition of the plant, which he describes as state-of-the-art.

"Part of me says they (Stellantis) will take a bite on the electric vehicle incentives," Morris said. "The other part of me wonders if they'll do that and maybe incorporate that with a hybrid into their current model that they make here. Maybe a mix of both. But, I would anticipate that they're probably not going to leave incentives on the table."

Ken DeCoster: kdecoster@rrstar.com; @DeCosterKen

This article originally appeared on Rockford Register Star: Belvidere Assembly Plant braces for more layoffs amid uncertain future