Jeep’s Two Bestsellers on Halt Due to Production Adjustments, High Inventories
Stellantis has confirmed to U.S. media outlets including The Wall Street Journal that production of the Jeep Wrangler and Grand Cherokee was put on halt in recent days, though it didn’t specify the reasons or the duration of the stoppage.
Production was scheduled to return to normal on Thursday, the automaker said through a spokesperson, adding that “Stellantis continues to take the necessary actions to improve operations in the U.S. market” and “will continue to monitor the situation to assess whether further action is required.”
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The move was simply described as “production adjustments.”
Stellantis announced back in December 2023 that the Detroit, Michigan plant where the Grand Cherokee is built would temporarily move from three to two shifts and reduce production in the process, though it failed to specify how many units would be cut. At the same time, we learned that the Toledo, Ohio factory that builds the Wrangler would switch from an alternative work schedule to a traditional two-shift operation, also affecting production down there. This led to hundreds of layoffs.
Then, after posting worse-than-expected results for the first half of 2024, Stellantis said it would quickly work on decisive actions to address operational challenges. CFO Natalie Knight talked about cutting production and lowering prices both in the U.S. and Canada this quarter. Reducing labour costs and logistics expenses in the second part of the year is also planned.
At the beginning of August, Jeep dealers in the U.S. had over a four-month supply of vehicles compared to the 68-day industry average.
High prices are also causing the Wrangler and Grand Cherokee to stay longer on Canadian dealer lots. Sales of these popular SUVs during the first six months of 2024 were down 33 percent and 19 percent, respectively, from the same period a year ago.
