US Stellantis to cut production of popular Jeep SUV, Ram pickup trucks on shortage of microchips

Adam Yanelli

23-Sep-2021

HOUSTON (ICIS)–Automakers have worked through the global shortage of microchips by prioritizing their most profitable vehicles, but the supply crunch has forced US automaker Stellantis to halt production of its popular Jeep Grand Cherokee SUV and Ram pickup trucks.

The company confirmed that production at the Jefferson North (Detroit) Assembly Plant, which produces the Jeep Grand Cherokee SUV, will be down the week of 27 September.

Stellantis previously said it shut production at the Sterling Heights (Michigan) plant, which produces the Ram pickup trucks, earlier this month because of the shortage.

The company is also halting production for the week of 27 September at the Belvidere (Illinois), the Brampton (Ontario, Canada) and the Saltillo (Mexico) assembly plants.

The company is restarting production at the Windsor (Ontario, Canada) assembly plant the week of 27 September.

The shortage of chips, which are used to control the engine, antilock brakes, power steering, fuel-monitoring system and heating and air conditioning in modern vehicles, has impacted multiple automakers as Ford, GM and Toyota have also announced cuts recently.

The production cuts have translated to reduced sales.

US August sales of new light vehicles fell sharply from July and remain well below volumes from the same month a year ago,

The automotive industry is a major global consumer of petrochemicals, which contribute more than a third of the raw material costs of an average vehicle and production disruptions could severely weigh on demand.

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