Belvidere Chrysler plant to lay off 1,641 employees, reducing shifts due to microchip shortage

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BELVIDERE, Ill. (WTVO) — Over 1,600 workers at the Fiat Chrysler Belvidere Assembly Plant will be laid off July 26th due to a microchip shortage, according to Stellantis.

“As we continue to balance sales with production of the Jeep Cherokee produced at Belvidere Assembly plant, which has been further exacerbated by the unprecedented global microchip shortage, Stellantis notified affected employees, the state of Illinois, the city of Belvidere and the UAW today that production operations at the plant will be reduced from two shifts to one as of July 26. This action could affect 1,641 represented employees. The company will make every effort to place laid off hourly employees in open full-time positions as they become available based on seniority,” Stellantis said Friday.

Stellantis has blamed a global microchip shortage for several work shutdowns this year. About 3,600 employees were off the job beginning March 29th.

The company said the supply of microchips would be re-evaluated every two weeks.

In March, following a two week shutdown in February, the company announced it would be cutting 150 jobs from its production line.

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