Chrysler Cuts Minivan, Truck Production
By Michelle Krebs July 1, 2008A year ago at this time, Chrysler was introducing its redesigned minivans. Now, with those
minivans selling below previous levels, Chrysler is closing one of its two minivan plants.
And before it even delivers the first redesigned 2009 Dodge Ram to a dealer showroom, Chrysler is closing one of its truck assembly lines.
On the eve of what is expected to be a terrible month for Chrysler sales, which could result in below 10 percent market share when industry sales are totaled later Tuesday, the automaker said it would shutter minivan and truck production in St. Louis, eliminating 2,400 jobs.
Chrysler said it would close its St. Louis, Mo., South Assembly plant Oct. 31, leaving only its Windsor, Ontario, plant producing Chrysler Town & Country and Dodge Grand Caravan minivans. The move will eliminate 1,500 jobs.
The Windsor plant, which will also produce the Chrysler minivan-based Routan for Volkswagen and will add the exported Chrysler Voyager from St. Louis, will operate on three shifts. Canadian plants have a bit of an advantage over American ones because of Canada's universal health care.
Chrysler also said it will eliminate a shift at its St. Louis, Mo., North Assembly plant, which makes the full-size Dodge Ram pickup trucks. The move will eliminate 900 jobs.
"The Chrysler and Dodge minivans have held a leadership share in a shrinking market and we believe in the long-term viability of the pickup market," said Jim Press, Chrysler president and vice chairman, in a statement issued late Monday. "We are clearly in a challenging environment, but continue to be focused on building a profitable enterprise for the long term. These actions will help us achieve this goal."
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