Jeep Cherokee assembly plant to shut down in 2023
The Stellantis conglomerate announced last Friday, December 9, 2022, that it will cease production of the Jeep Cherokee for an indefinite time. It is actually a factory located in Belvidere, Illinois. Its closure, which is scheduled for February 28, 2023, will result in the loss of 1,350 jobs.
In its announcement, Stellantis explained that this decision is due to several factors. From the outset, it is clear that the problems of supply of parts, including the shortage of semiconductors, in particular, have a lot to do with it. However, despite the manufacturer’s efforts to overcome these challenges, it says that the transition to electrification is proving very costly, which forces it to make this difficult but necessary decision.
It should also be noted that the sales of the Jeep Cherokee are not famous on our territory. In 2021, just over 98,000 copies were sold in Canada and the United States. While that number is high, it’s nothing for a category that’s in such high demand. Remember that the Honda CR-V sells, on average, more than 400,000 units in North America. As for the Toyota RAV4, more than 460,000 copies were sold last year in the same territory.
What future for the Cherokee?
Stellantis says that despite the job losses, it will do everything possible to work with the UAW union to reposition ex-employees into new vacancies based on their seniority and skills. Stellantis also said during its announcement that it will see, in the long term, how this factory can be reused for other functions, without however going into detail.
However, it is clear, in these difficult economic times, that the closure of the Belvidere plant will have a significant impact on many families who live in the region.
Now, what’s the future of the Cherokee? Stellantis has not said anything about a withdrawal from the lineup. Remember that Belvidere is not the only factory where this vehicle is built. The Stellantis plant in Changsha, China (GAC Fiat) is also building this vehicle for the local market.
However, the chances are very slim that the Cherokee will be built in China and then imported to us. Jeep could, however, decide to replace it with an electric version, based on its new eCMP architecture which also supports the Avenger. It is not known, however, where this model would be built.
We will therefore have to wait a few more months before seeing how the future of the Jeep Cherokee will take shape. One thing is certain, with such an announcement, we can see how expensive the shift to electrification is for industry giants like Stellantis.
