Jeep Grand Cherokee production paused following job losses
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The factory where Australia's Grand Cherokees are built has closed for a week – but Jeep says local showrooms won't be impacted.
Production of the Jeep Grand Cherokee – the brand's second-best seller in Australia – has been put on hold as the factory where it's built undergoes more job losses and a temporary shutdown.
According to website Mopar Insiders the plant in Jefferson, Detroit, United States (US) – officially known as the Detroit Assembly Complex Jefferson or DACJ – will stop building cars for a week between 28 October and 1 November 2024.
This means production has stopped for the Jeep Grand Cherokee – including five and seven-seat versions bound for Australia – as well as the Jeep Grand Cherokee L and Dodge Durango not available in Australian showrooms.
A spokesperson for the Australian office of Jeep's parent company, Stellantis, told Drive the temporary production pause will not impact stock or parts availability for Australian customers.
The news follows job losses at the same factory in September, which shed 69 full-time employees and 142 casual workers in the lead up to the 1 October hiatus, according to Mopar Insiders.
Fears the facility may remain closed beyond 1 November have also been fuelled by broader issues at other US factories including the Belvidere Assembly Plant in Illinois and the Kokomo casting plant in Indiana.
The fifth-generation Grand Cherokee was introduced in 2021 and, year-to-date, is only outsold by the Jeep Wrangler in Australian line-up, with both being given price cuts in 2024 – the Grand Cherokee reduced by as much as $28,000.
Despite the lower prices, local sales have fallen across the brand with a 48.9 per cent decline by the end of September 2024 for a ranking of 33rd overall.
While the electric Jeep Avenger small SUV has arrived in Australia this month – following its roll-out in Europe and the UK – the first electric Jeep in North America will be the Grand Wagoneer SUV.
After customer issues impacted the Jeep brand in both the US and Australia, Jeep CEO Antonio Filosa said a renewed focus on build quality would see the Grand Wagoneer delayed if it was not up to scratch.
In the US the updated 2025 model year Grand Cherokee – due in Australia early next year – has failed to stem slowing sales, although Jeep did post a 4 per cent increase in the third-quarter (July-September) of 2024.
Jeep parent company Stellantis Group – which also sells Alfa Romeo, Chrysler, Fiat, Ram and Dodge in North America – suffered an even larger sales fall of 20 per cent year-on-year over the same period.
This was the biggest third-quarter loss of the US major car makers, which saw Toyota an 8 per cent fall and General Motors (GM) record a 2.2 per cent drop.
Ford posted 5.3 per cent sales growth, but it was weaker than the 7.7 per cent growth it achieved in the same quarter in 2023.
They came after poor half-year results which saw Stellantis boss Carlos Tavares – who announced in early October he will step down from the role and retire in 2026 – saying he would consider axing Stellantis brands "that do not make money".
Mr Tavares came under fire from media given the poor performance of the brands within Stellantis, saying the company had a 10-year timeframe to rejuvenate each brand as part of its 'Dare Forward 2030' plan created in 2021.
Criticism also came from the great-grandson of the founder of its Chrysler brand – Frank B Rhodes Junior – who called for change after "mediocracy at best" from Stellantis.
To counter critics, at the 2024 Paris motor show Tavares announced reviews of each car brand under the Stellantis umbrella – which would include Jeep – will be carried out in 2026 when his yet-to-be named successor takes over.
The post Jeep Grand Cherokee production paused following job losses appeared first on Drive.
