Stellantis moves to 'idle' Belvidere Assembly Plant
Stellantis plans to "idle" the Belvidere Assembly Plant starting Feb. 28, according to a news release issued Friday.
Citing the COVID-19 pandemic and global microchip shortage, Stellantis says the biggest challenge to the industry is the "increasing cost related to the electrification of the automotive market."
"Stellantis has taken a number of actions to stabilize production and improve efficiency at its North American facilities to preserve affordability and customer satisfaction in terms of quality," the news release said. "While it considers other avenues to optimize operations, Stellantis has made the decision to idle the Belvidere Assembly Plant."
The release says the decision will result in "indefinite layoffs" expected to exceed six months. No return date is scheduled.
Stellantis says there are 1,350 workers at the plant, down from about 5,000 just a few years ago. Officials said Stellantis will make an effort to place laid off employees in open positions as they become available.
The news release hinted at considering incentives offered as part of Illinois' Reimagining Electric Vehicles Act to retool the Belvidere plant, but the company has declined to comment on its provisions.
A spokeswoman said all options are being considered.
"The company also is working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time," the release said.
Rockford Mayor Tom McNamara has worked with local and state leaders in an effort to offer incentives to Stellantis to retool the Belvidere Assembly Plant to produce electric vehicles.
McNamara said he has contacted Gov. JB Pritzker's office and the Workforce Connection to make plans to help families impacted "by these devastating layoffs."
"Hearing the news that Stellantis is continuing their layoffs with notices to all remaining employees today is disheartening," McNamara said. "Although the facility is not in Rockford it has a significant impact on many Rockford families and businesses."
A Rockford Register Star reporter since 2005, Jeff Kolkey writes about city government, politics, trends in the Rockford region and more. He is a Rockford resident, a married father of two and a White Sox fan. He can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on Twitter @jeffkolkey.
This article originally appeared on Rockford Register Star: Stellantis to 'idle" Belvidere plant and consider 'other avenues'
