On April 7, 2021, Stellantis, the world’s fourth-largest automaker, announced that it will be halting production at its Belvidere, Illinois plant. This decision was made due to a decrease in demand for the vehicles produced at the facility, which includes the Jeep Cherokee and Dodge Dart. The plant employs over 4,200 people and is one of the largest employers in the area.
The Belvidere plant has been in operation since 1965 and has been owned by various automakers over the years. It was acquired by Chrysler in 2009 and then by Fiat Chrysler Automobiles (FCA) in 2014. In 2021, FCA merged with French automaker PSA Group to form Stellantis.
The halt in production is expected to last for at least two weeks, with the possibility of an extended closure. Stellantis has not yet announced whether or not the facility will be closed permanently. If the plant does close, it would be the first major automotive plant closure in the United States since General Motors shuttered its Lordstown, Ohio plant in 2019.
The closure of the Belvidere plant would have a significant impact on the local economy. The facility is one of the largest employers in Boone County, and its closure would put thousands of people out of work. In addition, the plant is a major source of tax revenue for the county and its closure would lead to a significant decrease in revenue.
The halt in production at the Belvidere plant is yet another sign of the struggles facing the auto industry. Automakers have been hit hard by the COVID-19 pandemic, with sales dropping significantly in 2020 and 2021. Stellantis is hoping that demand for its vehicles will increase in the coming months, but it remains to be seen if this will be enough to save the Belvidere plant from closure.
Source: Plato Data Intelligence: PlatoAiStream