Due in large part to the high cost of assembling electric vehicles, automaker Stelantis is indefinitely shuttering an assembly plant in Illinois this coming February, in a move which will lay off hundreds of workers.

In a statement the company noted that the entire auto industry has been hard hit by a number of factors, including the Covid-19 pandemic, the chip shortage, and the increased costs of manufacturing electric vehicles.

The company noted it had taken a number of steps to try and stabilize production and efficiency at its North American plants to “preserve affordability and customer satisfaction in terms of quality.”

However the company said it was left with no choice but to shutter the Belvedere plant as of February 28th, 2023.

It went on, “This difficult but necessary action will result in indefinite layoffs, which are expected to exceed six months and may constitute a job loss under the Worker Adjustment and Retraining Notification (WARN) Act. As a result, WARN 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.”

The Belvedere plant produces Jeep Cherokees, and employs roughly 1,350 workers.

The automaker, when asked by an AP reporter, said it would not comment on the future of the “Cherokee nameplate.”

Stellantis spokesperson Jodi Tinson said, “This is an important vehicle in the lineup, and we remain committed long term to this mid-size SUV segment.”

Stellantis had previously committed to spending over $31 billion through 2025 on electrifying its vehicle lineup, with the goal of making electric vehicles comprise half of all US sales by 2030.