Chrysler could cut as many as five nameplates within the next month, a new report finds. A person familiar with the situation said that it is “highly likely” that Chrysler’s top executives will approve a plan to reduce the number of models offered by the automaker by month’s end. In all, five vehicles are being considered for elimination.
In recent UAW negotiations, Chrysler was unable to give its workers any kind of future products guarantee — unlike the General Motors-UAW agreement — giving credence that several vehicles could be getting the ax. “Virtually no Chrysler plant received commitment beyond the scope of their current product,” said Bill Parker, president of Local 1700 and chairman of the union’s Chrysler bargaining committee.
“We have models that overlap, where we have two or three vehicles that serve the same market segment and maybe the same customer and actually compete with each other to some extent,” Chrysler President and Vice Chairman Jim Press told the Detroit Free Press. “We also have markets where we have insufficient coverage. Where we don’t have enough product.”
Although Chrysler officials failed to mention which vehicles were up for consideration, industry analysis say the leading candidates for elimination include the Chrysler Pacifica, Dodge Dakota, Jeep Commander and Compass, Chrysler Sebring and Dodge Durango . The Dodge Durango seems to be the most likely for elimination, as its sales are down 30% and its Newark, Delaware assembly plant is slated to be closed in 2009.
