1,600 layoffs on the Illinois Jeep Cherokee manufacturing unit | Illinois Information

BELVIDERE, IL (AP) – A Jeep Cherokee plant in northern Illinois will cut roughly 1,600 jobs as automakers continue to plague global semiconductor shortages.

The U.S. arm of Stellantis, formerly known as Fiat Chrysler, said Friday it cut one of the two work shifts at its Belvidere assembly plant on July 26. That could lead to the layoff of 1,641 workers, company spokeswoman Jodi Tinson said.

The company is trying to “balance sales with production,” although the factory’s situation “has been made worse by the unprecedented global shortage of microchips,” Tinson said.

The Belvidere has been idle since the end of March, and Stellantis is repeatedly delaying the reopening, which is now not expected until later this month.

Numerous other auto plants, including many owned by General Motors and Ford, have closed in recent months due to chip shortages caused by semiconductor manufacturers moving factories to more profitable consumer electronics processors than automakers closed last year due to the closure to the pandemic.

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