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
Badger State Dealership Gets New Owner
The longtime southern Wisconsin store moved from one area auto group to another, keeping the business in Dairyland.
Read More →
The Cycle of Negative Equity
Third-quarter data shows consumers still rolling over debt and stretching loan terms, raising their risk of remaining underwater.
Read More →
Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →