Monday, June 30, 2008

Chrysler to cut minivan production

Chrysler said Monday that it will close a factory in Fenton, Mo., that makes minivans, and cut a shift at another plant that assembles pickup trucks.

In a company conference call, the company's plant in Windsor, Ont., was not identified as being in line for cuts.

The U.S. plant closing is bad news, even though the Windsor factory was spared, said Ken Lewenza, president of Canadian Auto Workers local 444, which represents the Windsor workers.

The weakening market for minivans means "the next plant that is vulnerable is us," he said.

On. Oct. 31, Chrysler plans to close the St. Louis South plant in Fenton that assembles the Dodge Caravan and Chrysler Town & Country minivan. The plant won't be reopened because "we see no need for the capacity in the future," president and vice-chair Tom LaSorda said.

The St. Louis North plant, which makes pickups, will cut production by eliminating one of two shifts.

Company officials cited the weaker economy and higher gas prices as reasons for the cuts.

Combined, they have reduced total vehicle sales and pushed buyers who are still in the market toward smaller vehicles.

Both General Motors and Ford have also announced cuts in production of larger vehicles earlier this year.

With files from the Associated Press

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