Stellantis Temporarily Pauses Jeep Wrangler, Grand Cherokee Production

KEY TAKEAWAYS

• Stellantis temporarily stopped making its top-selling Jeep Wrangler and Grand Cherokee sports-utility vehicles, as dealers complain about excess inventory.

• It paused production at two Detroit plants that reportedly make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is made.

• Stellantis said it will resume production Thursday.

Stellantis (STLA) temporarily stopped making its top-selling Jeep Wrangler and Grand Cherokee sports-utility vehicles in the past week, as dealers complain about excess inventory.

The Big Three automaker paused production at two Detroit plants that reportedly make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is made.

Production To Resume Thursday

Stellantis said it will resume production at the plants Thursday, as it “continues to take the necessary actions to improve operations in the U.S. market. This included making production adjustments at the Toledo North, Jefferson and Mack plants.”

The automaker added it “will continue to monitor the situation to assess whether further action is required.”

Stellantis’ high inventory levels have been attributed by dealers and Wall Street analysts in part to higher prices and the company offering fewer promotions than competitors, according to The Wall Street Journal.

The automaker in July posted a 48% year-over-year drop in net profit for the first half of the year, as it struggled with bloated inventories.

Shares of Stellantis were 0.8% lower at $15.95 in early trading Thursday. They’ve lost about 31% of their value since the start of the year.

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