Sad news, gang, the semiconductor chip shortage is still in full swing. The global chip shortage just caught up to the 2021 Jeep Grand Cherokee and 2021 Ram 1500 too. Production of the Jeep Grand Cherokee and Ram 1500 might come to a stop.
The 2021 Jeep Grand Cherokee faces semiconductor chip shortages
Say it isn’t so. Jeep is shutting down the 2021 Jeep Grand Cherokee production, and the Ram 1500 plant is also being closed due to the ongoing shortage of semiconductor chips. In an attempt to conserve chips, they were being used to make the most profitable vehicles.
Jeep has kept its plant in Belvidere, Illinois, closed for most of the year. It builds the regular Jeep Cherokee, but the chips have been used for more popular options like the Grand Cherokee instead. Now the plant at Jefferson North that makes the Grand Cherokee and new Jeep Grand Cherokee L will be closed for the week.
Ram already planned to shut down its Sterling Heights Assembly Plant next week for maintenance, but now it will be closed this week as well. This is where the 2021 Ram 1500 is being manufactured.
Are the Grand Cherokee and Ram 1500 in trouble?
Having to close the plants that build the 2021 Jeep Grand Cherokee and 2021 Ram 1500 may seem troubling, but Stellantis isn’t worried yet. The Ram 1500 has experienced incredible growth this year.
Ram reported a 47 percent increase in sales compared to 2020. Plus, it receives credit for increasing profit for Stellantis North America by more than 30 percent in the second quarter of 2021. Jeep is also doing well, with sales up by 19 percent in the second quarter of 2021 compared to 2020.
But despite their best efforts, Jeep and Ram are still struggling to keep the most profitable assembly lines running. They could still be harmed by the continued global chip shortage that’s ongoing at crucial levels.
Why do Jeep and Ram need chips?
The chips are little transistors made from silicon found in most of the minerals in the Earth’s surface. They enable computers, smartphones, and electrical devices in vehicles to function. Jeep, Ram, Ford, and more need them for infotainment systems, brakes, steering, and more.
The shortage was created by an increased demand for personal electronics during the Coronavirus (COVID-19) shutdown. Everyone got personal electronics to work from home, and production couldn’t keep up.
Now auto manufacturers aren’t the only ones that need more chips. The Playstation 5 needs chips as well as other electronic companies. This is fueling increased competition for the chips. But there is a light at the end of the tunnel.
The 2021 Jeep Grand Cherokee and 2021 Ram 1500 could get back on track soon, as chip-level slowly return to normal. The shortage is expected to improve toward the fall slightly, but levels may not return to normal until 2022.
Some auto manufacturers have continued to build vehicles without the chips. They can be seen stored in parking lots close to factories. The chips will be added to those vehicles once they become available.
We hope that this issue doesn’t plague auto manufacturers for much longer because we’re excited to see what 2021 and 2022 models bring to the table. We will keep you updated as we learn more.