Hi, Guest
09-21-2006, 01:10 AM
Chrysler Plans Deep Production Cuts
The Daily Auto Insider
Wednesday, September 20, 2006
September 2006
Chrysler will trim production and look at further restructuring in the face of a projected $1.5 billion third quarter loss, The Wall Street Journal reported, citing DaimlerChrysler AG Chairman and Chief Executive Officer Dieter Zetsche.
Chrysler will slash third-quarter retail-vehicle production by 90,000 vehicles, or 24%, and second-half output by 16%. The move was driven by the expectation by the company that its retail shipments will fall by 90,000 vehicles in the third quarter and by an additional 45,000 in the fourth quarter as a result of shifting demand from trucks and sport-utility vehicles to passenger cars, the story said.
Consequently, Chrysler expects its share of U.S. retail auto sales ââ¬â which include only vehicles sold through dealers to consumers and exclude fleet sales ââ¬â in the third quarter to be 10.6%, down from a previous estimate of 11.2%.
Chrysler also plans a two-week shut down in November of a Canadian plant in Brampton, Ontario, which makes the Chrysler 300 and Dodge Charger. The plant had been operating three shifts a day, but sales of the 300 have flattened and high gas prices have hurt sales of models with Chrysler's Hemi V-8 engine ââ¬â a "key driver of profits," the WSJ noted.
Chrysler will also cut production by about 15% at its Hemi plant in Saltillo, Mexico. Other plants targeted for cuts include its minivan plant in St. Louis, Mo., pickup truck plants in Saltillo and Warren, Mich., a Jeep plant in Detroit, and an SUV plant in Newark, Del.
Despite the production cuts, Zetsche insisted the division, which is in the middle of launching eight new models during the second half of 2006, will see an improvement in vehicle sales next year. "Our first task is to stay with our basic conviction that we're on the way to recovery with the Chrysler Group," Zetsche said.
The Daily Auto Insider
Wednesday, September 20, 2006
September 2006
Chrysler will trim production and look at further restructuring in the face of a projected $1.5 billion third quarter loss, The Wall Street Journal reported, citing DaimlerChrysler AG Chairman and Chief Executive Officer Dieter Zetsche.
Chrysler will slash third-quarter retail-vehicle production by 90,000 vehicles, or 24%, and second-half output by 16%. The move was driven by the expectation by the company that its retail shipments will fall by 90,000 vehicles in the third quarter and by an additional 45,000 in the fourth quarter as a result of shifting demand from trucks and sport-utility vehicles to passenger cars, the story said.
Consequently, Chrysler expects its share of U.S. retail auto sales ââ¬â which include only vehicles sold through dealers to consumers and exclude fleet sales ââ¬â in the third quarter to be 10.6%, down from a previous estimate of 11.2%.
Chrysler also plans a two-week shut down in November of a Canadian plant in Brampton, Ontario, which makes the Chrysler 300 and Dodge Charger. The plant had been operating three shifts a day, but sales of the 300 have flattened and high gas prices have hurt sales of models with Chrysler's Hemi V-8 engine ââ¬â a "key driver of profits," the WSJ noted.
Chrysler will also cut production by about 15% at its Hemi plant in Saltillo, Mexico. Other plants targeted for cuts include its minivan plant in St. Louis, Mo., pickup truck plants in Saltillo and Warren, Mich., a Jeep plant in Detroit, and an SUV plant in Newark, Del.
Despite the production cuts, Zetsche insisted the division, which is in the middle of launching eight new models during the second half of 2006, will see an improvement in vehicle sales next year. "Our first task is to stay with our basic conviction that we're on the way to recovery with the Chrysler Group," Zetsche said.
I was the only member on this board with a Yellow Focus Sedan, and a 2002+ Euro Facelift on a sedan.
