StellantisFiat, Dodge and Dodge are all made by, Jeep, announced it will stop one its 1200 workers will be laid off by plants in February. It is logical. Pressure from COVID-19, sure, along with a dash of chip shortages — but mainly all those electric vehicles it has to make.
The factory in question is One that builds Jeep Cherokees in Illinois and the news as the automaker is gearing up for union negotiations. United Auto Workers asserts that “the transition to electrification also creates opportunities” An unnamed animal is found at the plant Stellantis According to spokesperson CNBC The Wall Street Journal Instead, it was the reason for The halt. “The most impactful challenge is the increasing cost related to the electrification of the automotive market,” the company claims, adding that it’s exploring other uses for the plant, and that it’s trying to find jobs for the workers it’s laying off.
Stellantis is Spending billions EVs
But let’s back up for a second — one of the world’s largest automakers is It has to close down a plant indefinitely due to How much electrification? is Costing? That’s a bold claim, especially since it’s coming from a company I’d consider to be in distant third in the big three American automakers’ race to move their lineups from gas to batteries. It also doesn’t help that Stellantis has been promising quite a few electrified Jeeps, and it’s hard to see why this factory couldn’t play a role in making those vehicles, at least one of which is Due out in the next year (and many of these have been extremely difficult to find).
This isn’t to say that Stellantis isn’t spending big on EVs — it’s promised to split an up to $3 billion bill with Samsung for a battery factory in Indiana, and it’s investing $4.1 billion in a similar facility located in Canada, this time with LG. But that’s not an unthinkably large investment compared to some of its peers: GM is Spend $7 billion on one its Three EV battery factories in the works, Honda’s helping build a $4.4 billion plant in Ohio (and spending $700 million more to retool existing facilities), and Ford has announced it’s building three EV-related locations with a price tag of over $11.4 billion.
Ford’s an interesting comparison, though, because it also went through a recent round of layoffsThis will result in the elimination of approximately 3,000 jobs. No prizes for Guessing which excuse it offered employees. “We have an opportunity to lead this exciting new era of connected and electric vehicles,” read a memo from CEO Jim Farley and chairman Bill Ford. “Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century.” This, naturally, also meant reducing jobs.
It’s too early to say whether EVs If the auto industry continues to perform, they will be a common scapegoat. layoffs, but now we have at least two companies trying to paint thousands of peoples’ livelihoods as the cost of the future. (EV-native firms like Rivian and Tesla have had their own huge rounds of financing. layoffs this year, don’t have that luxury.)