Chrysler LLC has just announced two measures to help the privately-owned automaker scale back production to meet lower demand in the marketplace. The first is to move up the closure of its Newark Assembly Plant, which builds the Dodge Durango and Chrysler Aspen, from late 2009 to December 31, 2008. The second is to eliminate one of two shifts at the Toledo North Assembly plant that builds the Dodge Nitro and Jeep Liberty, also effective December 31. Chrysler says the Newark plant employs 1,000 workers, while 825 will be affected by the shift reduction in Toledo. According to The Detroit News, those 1,825 workers out of a job represent about 6% of Chrysler's hourly-workforce. These moves will also likely spell the end for the Durango and Aspen SUVs, as Newark is the only plant producing them and has been scaled back to one shift since July 2006.
Now that General Motors and Ford have completely abandoned the minivan market for good, the American originator of the species faces only Honda, Toyota, Nissan, Kia and soon Volkswagen as manufacturers that also offer competitive choices. Perhaps you'd think that Chrysler would be benefiting as the only domestic automaker currently playing in the segment, but it seems that sales are down this year by 13 percent for the Chrysler Town and Country while the Dodge Grand Caravan is down an alarming 35 percent. High gas prices are the obvious reason why the minivan market is seeing such a harsh downward trend, and likely the culprit behind Chrysler's impending move to idle its St. Louis South minivan plant as early as December, which would leave some 1,500 employees jobless.
Utility vehicles have been the biggest gas-price casualties, and slow sales are said to be forcing the Jefferson Avenue assembly plant in Detroit where the Jeep Grand Cherokee and Commander are assembled and the Toledo, Ohio North assembly plant which builds the Jeep Liberty and Dodge Nitro into extended shut-downs, as well.
