Belvidere Assembly Plant to go idle indefinitely in February

By Kevin Haas
Rock River Current
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BELVIDERE — Stellantis said Friday that it plans to idle the Belvidere Assembly Plant resulting in indefinite layoffs starting at the end of February.

“Our industry has been adversely affected by a multitude of factors like the ongoing COVID-19 pandemic and the global microchip shortage, but the most impactful challenge is the increasing cost related to the electrification of the automotive market,” the company said in a statement sent to members of the media Friday.

The plant, which is one of the region’s largest employers with roughly 1,350 workers, will be idle effective Feb. 28. It had employed close to 3,000 just a year ago before it reduced its workforce.

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Several state and local officials say they remain optimistic that the indefinite closure won’t be the end of the plant. Work has been ongoing for more than a year to try to pave the way for the facility to convert to making electric vehicles.

“I think that they are committed to repurpose the plant. It would have been great to have something and share some great news before the layoffs took place, but unfortunately, sometimes timing is everything,” said Pamela Lopez-Fettes, the executive director of Growth Dimensions, an economic development group that works to attract and retain business in Boone County. “We hope that there’s a product that will be in the pipeline and Stellantis will want to invest and be able to not only recall some of these individuals but maybe attract some additional workforce.”

The company said the action will result in indefinite layoffs that are expected to exceed six months.

WARN, or Worker Adjustment Retraining Notification, Act notices have been issued to both hourly and salaried employees.

“The company will make every effort to place indefinitely laid off employees in open full-time positions as they become available,” Stellantis said in a statement. “The company also is working to identify other opportunities to repurpose the Belvidere facility and has no additional details to share at this time. ”

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The push for electric

A year ago, Gov. JB Pritzker signed legislation to offer incentives to companies for electric vehicle production in Illinois. State Sen. Steve Stadelman, a Democrat from Loves Park, was among those pushing forward the bill in hopes that it could pave a new future with new vehicles for the Belvidere Assembly Plant.

Stadelman said discussions continue between the state Department of Commerce and Economic Opportunity and Stellantis. Last week, lawmakers added new provisions designed to help automakers retool existing facilities, Stadelman said.

“It’s a hyper-competitive situation. We’re competing against other states. We’re competing against other countries, and we need to put our best foot forward,” Stadelman said. “Hopefully we can incentivize Stellantis to retool that plant.”

The United Auto Workers union said it was deeply angered by Stellantis’ decision.

“We believe Stellantis is grossly misguided in idling this plant, which has produced profits for the company since 1965,” UAW President Ray Curry said in a statement. “Not allocating new product to plants like Belvidere is unacceptable. Announcing the closure just a few weeks from the holidays is also a cruel disregard for the contributions of our members from UAW Locals 1268 and 1761.  We will fight back against this announcement.”

UAW Vice President and Director of the Stellantis Department Cindy Estrada said the plant should not have been idled without a plan for the future.

“There are many vehicle platforms imported from other countries that could be built in Belvidere with skill and quality by UAW members at Belvidere,” she said. “The transition to electrification also creates opportunities for new product. Companies like Stellantis receive billions in government incentives to transition to clean energy. It is an insult to all taxpayers that they are not investing that money back into our communities.”

State Sen. Dave Syverson, a Republican from Rockford, said the closure is a reflection of Illinois’ overall business climate.

“We can’t seem to get the administration to understand that if you improve the jobs climate you can grow your way out, but if you try to tax your way into prosperity it doesn’t work,” Syverson said.

Syverson said they will reach out to see if there is “any chance for revival or survival,” but so far those attempts haven’t had much traction.

“We’ve reached out in the past numerous times and not had much back in the way of a response,” he said.

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Rockford Mayor Tom McNamara said via Twitter that it was disheartening to hear the news of Stellantis layoffs. Although the facility is east of the city of Rockford, he said it has a significant affect on many Rockford families and businesses.

“I have already been in contact with the governor’s team, as well as our local Workforce Connection, to set in motion a plan to assist families impacted by these devastating layoffs,” McNamara wrote.

What happens to suppliers?

She said a combination of federal, state and local incentives will be needed for Stellantis for retool the facility for a new product.

“I think that we’re doing everything in our power that we could possible do to attract a new product,” Lopez-Fettes said. “I’m hoping that the news will be sooner than later.”