Production Cuts Continue as Chip Shortage Lingers
Stellantis is latest carmaker to signal additional cutbacks.
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.
Originally posted on Auto Dealer Today
More Industry
Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →