The Jeep Grand Cherokee L drives off the line for sale at the Stellantis Detroit Assembly Complex - Mack plant in Detroit on Thursday, June 10, 2021. On February 26, 2019, FCA announced that it would invest $1.6 billion to convert the two plants that comprised the Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee, as well as an all-new three-row full-size Jeep SUV and plug-in hybrid (PHEV) models, adding 3,850 new jobs to support production.

Sticker shock drives up car loans, monthly bills, and inflation index

Sticker shock triggered pointed comments in President Joe Biden’s State of the Union address Tuesday when the president took a tiny jab at carmakers by saying “one-third of all the inflation is because of automobile sales.” 

“There weren’t enough semiconductors to make all the cars that people wanted to buy,” Biden said. 

“And guess what? Prices of automobiles went way up, especially used vehicles as well.” 

Biden then suggested that what’s needed is to lower costs, not wages, and make more cars and semiconductors in America.

Where prices really took off, of course, was on used car lots. Many consumers turned to used cars when their dream new car or truck cost too much or the new model wasn’t readily available at the dealership, thanks to the semiconductor shortage that hit assembly lines. Demand took off as jobs returned and stimulus checks helped fuel car sales, too.