A Jeep manufacturer in Illinois has stated that it will lay off thousands of American workers and relocate its operations to Mexico.
The apparent cost of attaining the Biden govt.’s national goal of making sure that 50% of all the new passenger cars and light trucks that are sold in 2030 are so-called zero-emission vehicles is a big driver behind the relocation and layoffs.
How it all began
President Biden signed an executive order just over a year ago urging that 50% of all new automobiles manufactured in America be electric.
Biden suggested in his executive order that the campaign to phase out gas-powered vehicles “will enable us to boost jobs — with decent pay and benefits — throughout the United States along the complete supply chain for the automotive industry, from components and equipment production to final assembly.”
After declaring that “the future will be created in America,” Biden climbed into a Jeep Wrangler and drove it around the White House South Lawn.
Senator Tom Carper (D-Del.) joined other Democrats in applauding the initiative, saying, “Today’s news from the Biden admin. is great for our planet, beneficial to our health, and excellent for our country’s autoworkers.”
According to NBC News, GM, Ford, and Jeep manufacturer Stellantis were on board, indicating their “determination to be pioneers in the United States’ transition to electric vehicles.”
Stellantis announced last July that it would invest more than $35.5 billion in electrifying all its different vehicles within the next two years, according to CNN.
Biden emphasized, “There is no going back. The question is whether we will lead or trail in the race for the future.”
How is everything going?
Stellantis stated on Friday that approximately 1,350 Americans will fall behind and be out of work.
According to the Associated Press, the business announced that its Belvidere Assembly Plant, which manufactures the Jeep Cherokee, will close on February 28.
“This difficult but essential measure will cause indefinite layoffs projected to last more than six months,” the firm said in a statement.
The automobile business, according to Stellantis, “has been negatively affected by a variety of issues such as the continuing Covid pandemic and the worldwide microprocessor shortage, but the most devastating concern is the increased cost associated with the electrification of the automobile sector.”
Previously manufactured at the Belvidere plant, the Jeep Cherokee will soon be constructed at a factory in Toluca, Mexico.
The United Automobile Workers (UAW) union immediately attacked the action, calling it “grossly misplaced.”
“It is unacceptable not to allocate new product to plants like Belvidere. Announcing the shutdown so close to the holidays is also a harsh disregard for the sacrifices of our UAW Locals 1268 and 1761 members. We will respond to this announcement,” Curry stated.
“We are all profoundly angered by Stellantis’ decision to stop the Belvidere Assembly facility without a strategy for future product,” UAW vice president, Cindy Estrada, and head of the Stellantis Dept. said in a statement.
“Stellantis, for example, has received billions of dollars in government incentives to convert to clean energy. It’s an insult to every taxpayer that this money isn’t being invested back into our towns,” Estrada said.
Stellantis issued a recall of more than 63,000 hybrid Wranglers over the weekend, in addition to laying off thousands of Americans. Last month, the business was also forced to recall 280,000 Ram pickups.