Stellantis assembly line shows an engine head being loaded for a Jeep Cherokee, whose production may be cut back next year.  -  IMAGE: Stellantis

Stellantis assembly line shows an engine head being loaded for a Jeep Cherokee, whose production may be cut back next year.

IMAGE: Stellantis

Carmakers are continuing production cutbacks as the ongoing microchip scarcity shows no signs of disappearing.

The latest example is at Stellantis, which Automotive News reported has plans to reduce production of the Jeep Cherokee next year because of the chip shortage, though Stellantis didn’t confirm that.

The publication cited an AutoForecast Solutions expert who said the automotive industry will have to absorb the loss of up to 3 million vehicles next year.

Though the chip shortage has shown signs of easing, it’s not going away any time soon. Though U.S. carmakers are working on acquiring or creating new supply chains, the impact won’t be immediate.

The U.S. government is pouring money into such efforts in North America and offering tax breaks on cars with batteries made on the continent and with parts made or recycled here.

READ MORE: Automakers Tweak Production Over Microchips

Originally posted on Auto Dealer Today

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