Grand Cherokee plant chip shortage turns into layoffs

Several sources, including Detroit News, Automotive News, and our own trusted source, have stated that the Jefferson Avenue plant which makes the Grand Cherokee will slow down due to a chip shortage. The root cause is the Texas grid’s lack of preparation for freezing weather, which caused power outages across the state, knocking a semiconductor factory offline. That not only affected production—destroying any materials in the manufacturing process—but also damaged equipment which has still not been repaired or replaced.

Jefferson North (2017)

Jefferson Avenue has laid off the B and C shifts for the weeks of 4/26, 5/3, and 5/10; the A crew is laid off for the weeks of 5/17, 5/24, and 5/31. (The probability that Jefferson North would go down was quite strong last week.)

Various chip and semiconductor shortages have knocked out production of cars and trucks around the world.