|
CHRYSLER
TO CUT NEARLY 1,400 ILLINOIS JOBS, ADD 6,500 IN MICHIGAN
Illinois Policy Institute/
Vincent Caruso
The Jeep Cherokee manufacturer plans to lay
off nearly 1,400 workers at its Belvidere, Illinois, facility and invest
$4.5 billion in a 6,500-job expansion in Michigan.
|
|
 The nation’s third-largest auto manufacturer will shrink its
Illinois footprint with plans to expand across state lines.
Fiat Chrysler Automobiles announced Feb. 26 it plans 1,371 layoffs at its
facility in Belvidere, which is close to Rockford, Illinois. That announcement
came just hours after the manufacturer revealed it would invest $4.5 billion
across five plants in neighboring Michigan, which it estimates will create 6,500
jobs.
Chrysler’s Belvidere site currently employs about 5,300 workers and houses
exclusive production of the Jeep Cherokee, according to the Chicago Tribune. The
company will retain its remaining 3,760 workers, The Associated Press reported.
The automaker previously housed production of the Cherokee in Ohio, before
moving it in June 2017 to Illinois.
The company’s decision to scale back its Belvidere workforce was motivated by
declining consumer demand for the Cherokee, Chrysler spokesperson Jodi Tinson
said. Chrysler sees the Michigan investment and Belvidere cuts as “two separate,
distinct actions,” Tinson told the AP.
[to top of second column] |
But regardless of a link between the automaker’s
decisions, the contrast between the Land of Lincoln’s losses and
neighboring states’ gains is too familiar.
In 2018, Illinoisans saw numerous large manufacturers shutter
facilities and slash jobs in Illinois, while relocating or expanding
across state lines.
Unfortunately, state leaders’ poor decision-making is only likely to
exacerbate the problem. Smaller businesses are already shedding jobs
to brace for a $15 minimum wage increase signed into law by Gov.
J.B. Pritzker, while others anticipate it will give an advantage to
businesses in neighboring states.
Pritzker’s push to create a graduated, or “progressive,” income tax
structure in Illinois will only damage the state’s slow economy and
increase taxes for middle-class families. Illinois’ constitutionally
protected flat tax is one of its few competitive advantages. A high
property tax burden and hostile regulatory environment have
suppressed Illinois’ economy in spite of its flat tax. Without it,
spurring economic growth will be even more difficult.
To recapture lost investment, state leaders must create a tax
climate that businesses flock to – not from.
Click here to respond to the editor about this article |
