01:46 29-03-2026

Jeep Cherokee production paused over parts supplier conflict

Production of the new Jeep Cherokee has been temporarily halted due to a dispute between Stellantis and parts supplier ZF Foxconn Chassis Modules. The conflict centers on demands to increase contract prices.

Assembly of the Cherokee and Compass models at a plant in Mexico was suspended starting March 14. The supplier cut off parts deliveries while pushing for additional payments. According to court documents, Stellantis had already agreed to a significant price hike and paid over $26 million, but was later asked for roughly $70 million more.

Court intervention allowed supplies to resume temporarily, preventing shutdowns at other production lines, including those for the Chrysler Pacifica and Dodge Charger. Mexican production is expected to restart soon.

Despite the disruption, no vehicle shortage is anticipated in the market. U.S. dealers already have more than 5,000 Cherokee units in stock. If the parties cannot reach a settlement, the court will issue a final ruling on the dispute.