Stellantis is trimming the work force at the Belvidere Assembly Plant in Illinois that produces the Jeep Cherokee in May.
A company spokeswoman said “the reductions will be achieved through a combination of retirement packages offered to eligible UAW-represented employees as well as layoffs of both hourly and salaried staff.” Stellantis hasn’t disclosed how many jobs will be cut.
The plant has been wracked by production downtime and previous layoffs. The automaker cut the second shift last summer and said in November that it was laying off around 400 workers.
The site grappled with downtime even before the chip shortage as the company sought to match Cherokee production to demand. Cherokee sales were down 34.4 percent last year to 89,126 deliveries.
Stellantis said it notified affected employees, the state of Illinois, the city of Belvidere and the UAW on March 28 that layoffs could begin as early as May 27. The retirements will take effect on May 31.
The automaker said it’s making the cuts “in order to operate the plant in a more sustainable manner.”
AutoForecast Solutions is expecting production of the Dodge Challenger and Charger muscle cars to move to Belvidere in 2024. Those redesigned models would be on Stellantis’ electrified STLA Large platform.
Layoffs also hit company’s the Sterling Stamping Plant in suburban Detroit. The company said about 98 employees were indefinitely laid off on March 28.
