Stellantis/Chrysler/Jeep shutting down the Belvidere, IL plant

[GON]

Stellantis states the cost to produce electric vehicles is the reason for shutting down the Jeep production assembly plant.
Fox Business: Automaker Stellantis lays off hundreds of American workers, blaming high cost of making electric cars.

Automaker Stellantis lays off hundreds of American workers, blaming high cost of making electric cars

Stellantis announced its decision to idle operations at an assembly plant in Belvedere, Illinois, next February, resulting in "indefinite layoffs" for workers.

www.foxbusiness.com

 

[OVERKILL]

Not surprising unfortunately. I expect we'll see more of this.

 

[GON]

Not surprising unfortunately. I expect we'll see more of this.

I was a bit surprised. That plant is under 10 miles from a cargo airport with huge capacity, about an hour from O'Hare, plant is right on the interstate for easy receiving of parts, and transport if new vehicles. In the Midwest, so transport costs not extreme to either cost. And a very ample labor pool.

 

[OVERKILL]

I was a bit surprised. That plant is under 10 miles from a cargo airport with huge capacity, about an hour from O'Hare, plant is right on the interstate for east receiving of parts, and transport if new vehicles. In the Midwest, so transport costs not extreme to either cost. And a very ample labor pool.

It appears to only produce one vehicle though (the Cherokee). Not sure if there's electrification planned for that platform? I know there is for the GC and the RAM.

 

[dishdude]

I toured this plant while they were making the neon there, sad to see it go.

 

[ChiTDI]

That is a surprise to me too. The logistics that plant has to offer are terrific.

 

[Danno]

Cherokee is/was a popular model for our dealership.

Fuel economy was not the greatest.

Could that be the reason for ending production of that platform?

 

[PimTac]

Reading up on that plant, just 12 years ago Chrysler put $600 million into the plant.

 

[PF52]

I was a bit surprised. That plant is under 10 miles from a cargo airport with huge capacity, about an hour from O'Hare, plant is right on the interstate for easy receiving of parts, and transport if new vehicles. In the Midwest, so transport costs not extreme to either cost. And a very ample labor pool.

+2

Good rail access too. Supposedly, it was the C&NW Railroad which first earmarked the property back in the 1960s and suggested it to Chrysler as an ideal spot for their new plant.

 

[High Performance Lubricants]

Keep in mind Illinois is not the most business friendly state in the nation. They actually have what they call a “replacement tax”. They tax existing businesses so they have money to entice new businesses to the state in an effort to offset businesses leaving the state. They will not keep up.

 

[Pew]

Not surprised they're leaving this state. Mitsu left the Normal, IL plant where the Outlander was made in 2015-ish. I went to the last year they held Mitsubishi Owner's Day there. Rivian bought it not too long ago though. Shame overall though, I loved looking at when passing it.

 

[Rmay635703]

Not surprised they're leaving this state. Mitsu left the Normal, IL plant where the Outlander was made in 2015-ish. I went to the last year they held Mitsubishi Owner's Day there. Rivian bought it not too long ago though. Shame overall though, I loved looking at when passing it.

That Rivian plant was a dieselgate storehouse.

Rivians only income for many years was storage fees

 

[billt460]

Illinois is operating under the pretense of almost as if they politically TRY to run businesses out of that state with ridiculous taxation, and burdensome environmental laws.

Illinois is, and has been, it's own worst economic enemy for years. Real estate property taxes are among the highest in the nation.... And now jobs are evaporating left and right that help support that tax base. The infrastructure is falling apart, and there is little to no money to fix any of it.

Now they are being forced to close schools, because they can't afford to keep them open. All due to the fact the Teachers Unions there are bankrupting the entire state with unsustainable pensions and benefits. Not to mention city workers all doing the same.

Add to that the fact they make it all but impossible to operate a business there at a profit, and give zero incentives to business owners to come there, and you have a solid cornerstone on which to build an economic disaster. Illinois could be used as an example by the rest of the 49 states, of how NOT to operate a state government.

 

[PF52]

Not surprised they're leaving this state. Mitsu left the Normal, IL plant where the Outlander was made in 2015-ish. I went to the last year they held Mitsubishi Owner's Day there. Rivian bought it not too long ago though. Shame overall though, I loved looking at when passing it.

It's especially telling considering the incentives the state gave DSM to build the plant there in the first place. Another good example is the empty former-Motorola factory in Harvard.

 

[LouC]

Quite honestly NY State is even worse! We have the twit AOC who managed to chase 25,000 jobs out of NYC. And now predictably; clueless Mayor Eric Adams is talking huge budget cuts. Yep the people don’t learn they continue to vote the same way. The last time we got a really revival in NYC it took bankruptcy; I recall the NY Post headline when they begged DC for money “DC to NYC…Drop Dead”. It took Rudy Giuliani making hard choices and alienating people to turn things around. Then; the clown Di Blasio comes in and ruins it in 4 years; what to the voters do? Re-elected the clown. And so it goes!

 

[PWMDMD]

Illinois is operating under the pretense of almost as if they politically TRY to run businesses out of that state with ridiculous taxation, and burdensome environmental laws.

Illinois is, and has been, it's own worst economic enemy for years. Real estate property taxes are among the highest in the nation.... And now jobs are evaporating left and right that help support that tax base. The infrastructure is falling apart, and there is little to no money to fix any of it.

Now they are being forced to close schools, because they can't afford to keep them open. All due to the fact the Teachers Unions there are bankrupting the entire state with unsustainable pensions and benefits. Not to mention city workers all doing the same.

Add to that the fact they make it all but impossible to operate a business there at a profit, and give zero incentives to business owners to come there, and you have a solid cornerstone on which to build an economic disaster. Illinois could be used as an example by the rest of the 49 states, of how NOT to operate a state government.

I grew up in Illinois and it's too bad they can't figure it out. For as much crap as Massachusetts gets for high taxes now that I live here, I can say taxes are not nearly as bad as NYS or CT. Infrastructure is good, schools are good, jobs are good, and we are always fairly well insulated from the economic woes of the rest of the country. We have so much money that MA just gave back a couple billion to taxpayers equal to about 15% of what they paid in state tax last year. There are ways to be an economically successful "progressive" state.

 

[Astro14]

I grew up in Illinois and it's too bad they can't figure it out. For as much crap as Massachusetts gets for high taxes now that I live here, I can say taxes are not nearly as bad as NYS or CT. Infrastructure is good, schools are good, jobs are good, and we are always fairly well insulated from the economic woes of the rest of the country. We have so much money that MA just gave back a couple billion to taxpayers equal to about 15% of what they paid in state tax last year. There are ways to be an economically successful "progressive" state.

It really helps to be neighbors with states that are run badly.

When big companies like GE leave the high taxes of CT for the “lower” taxes of MA, it’s not that MA is doing a good job, they’re just doing better than CT and NY.

 

[Wrenchturner44]

Stellantis may be readying this plant for Chrysler Airflow / Dodge Hornet production.

Both will be similar sized and most likely evolve together with similar drive trains.

When I heard this news, I thought of Sergio rolling over in his grave as he visited the site several times and recognized the teams there for their quality and work ethic. The question is does Tvares, the current Stellantis CEO realize that to capture U.S. market share and be cost competitive for the mid size segment that he most likely will need a viable plant in NA, especially with the current EV incentives provided in the IRA legistlation?

 

[LDM]

It really helps to be neighbors with states that are run badly.

When big companies like GE leave the high taxes of CT for the “lower” taxes of MA, it’s not that MA is doing a good job, they’re just doing better than CT and NY.

Its a very common issue here in IL. Our property taxes are ridiculous, some of the highest in the nation. Chicago runs everything and ruins the rest of the state with the idiotic legislature they pass ever year. Jobs keep moving to the neighboring states, along with the people. Kinda wish I would have left back in the early 2000s when I was considering it, now I guess I will wait until retirement.

Caterpillar moved its headquarters from Peoria to the Chicago area a few years ago and is now moving its headquarters to Texas. They have tried to tell the state (Chicago) for years that they are taxing everyone out of the state, both people and businesses, yet it does nothing but fall on deaf ears. I was surprised Rivian decided to buy the old Mistubishi plant and get it going again but considering the poor business decisions that Rivian makes I suppose I shouldn't be.

 

[LouC]

check out www.allpar.com
they may have more information on what's happening with this plant.
It is hard for youngsters here in NY to even conceptualize what we had here just on Long Island alone at one time:
Grumman
Republic and later Fairchild Republic
Sperry
and all the sub-contractors feeding parts to these companies....

So, during WW-II, Grumman and Republic built over 25,000 planes for the military, Grumman for the Navy and Republic for the USAAF. And Grumman built the Lunar Module, right here, with a team of 7,000 engineers, machinists, etc, from 1962-1972, as well as the F-14 Tomcat. Fairchild Republic's A-10 Thunderbolt II is still flying today.
Its all gone now, except for the ground water pollution!
What Republic Airport looked like circa 1944 or so, with the sprawling Republic Factory at the north end:

And what came out of this factory in East Farmingdale Long Island:

then the early 50s Korean War era, building F-84s

and Repubic's last indepedent design the F-105 Thunderchief:

The last plane built by Fairchild Republic, the A-10 Thunderbolt II, still flying:

Grumman engineers in Bethpage watching the LEM land on the moon....

and the fabled Tomcat, a thing of beauty forever:

All made in New York State!