Jeep reportedly cuts production as SUVs pile up at U.S. dealerships

Automotive group Stellantis suspends production Jeep Grand Cherokee and Wrangler models in the U.S. amid difficulty shifting inventory.

Production of the two models was suspended at the Toledo, Ohio, and Detroit, Michigan, plants early last week and resumed on Thursday.

There is no official word yet on how long the production halt will last.

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Stellantis described the move to suspend U.S. manufacturing as a “production adjustment.”

“Stellantis will continue to take the necessary steps to improve operations in the U.S. market,” a company spokesman said. Wall Street Journal.

“The company will continue to monitor the situation to assess whether further action is necessary.”

The move comes as Stellantis’ U.S. sales fell 21% in the first half of 2024.

The drop in demand is exacerbated by oversupply in showrooms — Jeep reportedly has enough inventory in the U.S. to last four months, compared with an industry average of 68 days.

The Jeep brand’s prospects in Australia are not optimistic either.

Australian sales in the first half of 2024 were down 52 per cent compared to the same period in 2023, totalling 1,282 vehicles.

Jeep has slashed prices on a number of its models over the past few months, with the Grand Cherokee lineup dropping between $11,000 and $28,000, while the slow-selling Gladiator pickup truck is being slashed nationwide by as much as $25,000.

While Jeep says these price cuts apply only to model-year 2023 (MY23) vehicles, pricing for MY24 vehicles has yet to be announced.

With the exception of 2021, local sales have fallen every year since 2014, when more than 30,000 Jeeps were sold.

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