DETROIT (AP) - In another sign of the pressures facing the Chrysler arm of
DaimlerChrysler AG, the company said Friday it would idle seven factories in
the United States and Canada for one week starting Monday to cut vehicle
inventories.
The move comes as sales of Chrysler, Dodge and Jeep vehicles have been
erratic in recent months, with several models posting large declines. About
20,000 workers will be idled, but will receive 95 percent of their regular
pay under union contracts.
The plants include a truck factory in Warren, Mich.; St. Louis Assembly
North in Fenton, Mo.; and the Jeep Wrangler plant in Toledo, Ohio. Plants
also will close in Newark, N.J., and Belvidere, Ill., along with operations
in Bramalea and Windsor, Ontario.
DaimlerChrysler spokesman Trevor Hale said the announcement was not related
to the poor third-quarter financial results DaimlerChrysler reported
Thursday, but rather was a move to cut the number of unsold vehicles.
"We worked a lot of overtime in the past year, and production now is
catching up with demand," he said.
Hale said he did not have an estimate for how much production would be cut
or by how much inventories would decline. The move will affect production of
Dodge Ram and Dakota pickups, Dodge Ram vans, the Dodge Durango and Jeep
Wrangler sport utility vehicles, the Neon subcompact and the company's large
LH sedans - the Dodge Intrepid and the Chrysler Concorde, LHS and 300M.
While U.S. auto sales for the year through September were up 5 percent,
DaimlerChrysler's car sales excluding Mercedes-Benz were down 11 percent,
while its truck sales are flat.
At the beginning of October, it had a 71 day supply of cars, according to
Ward's Automotive Reports. The industry standard is 60 days.
Ward's said the company had a 63-day supply of trucks, but that figure
includes the popular Chrysler PT Cruiser, which is in short supply; Chrysler
had a 97 day supply of Dakota pickups and an 82 day supply of Ram trucks.
DaimlerChrysler is not the only automaker that has had to take steps to keep
its inventories in check. General Motors Corp. is offering zero-interest,
five-year loans to reduce its stock of 2000 model year vehicles, while Ford
Motor Co. is offering cash rebates and cheap loans on 2001 model year
vehicles.
---Ron 00 SLT QC 4X2 5.9 46RE 3.92 LSD For modifications see my DML Profile
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