Chief Executive Carlos Tavares said the automaker is "looking for a solution" for an Illinois assembly plant scheduled to stop producing Jeep SUVs on Tuesday, but the high costs of producing electric vehicles there may make it hard to keep the plant open.
"We need to find a solution for the fact that the technology that has been decided is 40% more expensive" than combustion vehicles, Tavares told reporters during a videoconference. That means changes in the automaker's production footprint, he said. The United Auto Workers union, which represents 2,300 workers at the plant, said Tuesday the decision to halt production at the factory with no future product in sight "will not stand."
The UAW and the Detroit Three automakers, including Stellantis North America, will negotiate new master labor agreements this fall. A strike by UAW workers could disrupt production of trucks and SUVs that generate the bulk of Stellantis' global profits.