American Car Factory Lays off 1,350 Workers to Cut Costs on Electric Vehicles

December 13, 2022

Stellantis, the parent company of Jeep, announced this week that it would be laying off approximately 1,350 workers at its plant in Illinois. The reason given for the layoffs: the cost of electric vehicles. CNBC reports, “Stellantis said Friday that it plans to indefinitely idle a Jeep plant in Illinois, starting early next year, to cut costs as it invests in electric vehicles. The transatlantic automaker, formerly known as Fiat Chrysler, said the plant will cease production as of Feb. 28. The more than 1,200 workers at the facility, which produces Jeep Cherokee SUVs, will be placed on indefinite layoffs, the company said.” 

There are multiple reports that these American jobs will be headed overseas as the company looks for cheaper ways to produce costly EVs. Engadget reports, “United Auto Workers Local 1268 shop chairman Tim Ferguson told Reuters that company documents show Stellantis plans to move Cherokee production to a facility in Toluca, Mexico. ‘To me, there is no question about it, he said. ‘Their plan is to close this plant.’

Stellantis declined to comment on Ferguson’s allegations. ‘We are not commenting on the future of the Cherokee,’ the company said.” 

The announcement comes less than four months after President Biden signed the so-called Inflation Reduction Act which spends nearly $370 billion on climate provisions – including on electric vehicles. At the time, the White House trumpeted the claim it would “create good paying jobs.” That claim is not looking true today. 

“It may be the holidays, but the only gift from President Biden’s failed climate agenda is a pink slip,” said Daniel Turner, the founder and executive director for Power The Future. “The laughably titled ‘Inflation Reduction Act’ is spending billions on a failed agenda but not one penny will go to help these workers who now must watch their jobs lost to Mexico. All because Joe Biden wants to pick winners and losers.”