Stellantis is moving closer to closing its factory in Belvidere, Illinois, as it prepares for the costly transition from internal combustion to electric vehicles.
The factory, which now employs about 1,350 workers, officially was placed on “idle” by the company on Tuesday. That term means it intends to shut down the plant.
The company, Tavares said, is executing a transformation to electric vehicles, which are 40% more expensive to make than those with internal combustion engines. Stellantis, he said, can't pass the increased costs to consumers because many wouldn't be able to afford new cars. It also can't sell EVs at a loss, so it's left with absorbing the added costs.
Stellantis, Tavares said, has to optimize its manufacturing and distribution footprints."If we don' fix it then everybody's going to be in trouble," he said.
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