Chrysler Cuts More Production
January 03, 2008

Chrysler, as planned, will lay off 1,096 workers at its assembly plant in Belvidere, Ill., the automaker confirmed Wednesday.

The northern Illinois plant, which employs 3,815 workers in total, produces the once-hot Dodge Caliber, Jeep Compass and Patriot compact cars.

Chrysler had announced in November it would lay off 12,000 workers and eliminate shifts in five North American plants to combat falling sales. The automaker said at that time that the Belvidere plant would go from three shifts to two in the first quarter because sales of these initially hot models had slowed.

The models the plant produces have quickly tired in the market, and have problems that must be addressed: conspicuously "costed" interiors, underwhelming powertrains further blunted by porky curb weights and, for the Jeep variants, questions about their entire raison d'etre.

These compacts -- Chrysler's smallest and least expensive, though by no means small and cheap enough compared to the competition, need help and need it fast. The segment is filling with tough new competition, while the Honda Civic, Honda Fit and Mazda3 are best-sellers.

Posted by Michelle Krebs at 4:47 AM under Chrysler , News | Comments (0) | digg this | Seed Newsvine