(New throughout, adds details and background about the plant,
further comments from CEO)
DETROIT, Feb 28 (Reuters) - Stellantis NV 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.
Tavares warned again Tuesday that the shift to electric
vehicles pushed by regulators in the United States and Europe
could shrink the auto industry.
As Stellantis shifts its product mix toward electric
vehicles, "the way to do business in the U.S. is going to
change," Tavares said.
Replacing the 15-year-old vehicles on the road with
equivalent modern vehicles could cut emissions by an average of
50%, Tavares said. "You get a more affordable proposition than
the BEV," he said, referring to battery electric vehicles.
On a separate issue, Tavares said Stellantis has secured
raw materials it needs for electric vehicles through 2027, and
could make additional investments in mining companies to lock in
supplies.
Tavares said battery technology "has not stabilized."
Raw materials needed for today's batteries could change as
battery technology changes, he said.
(Reporting By Joe White; Editing by David Gregorio)
