Chrysler today confirmed rumors that it will discontinue the Dodge Magnum, the convertible Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire in 2008.
[Update] Chrysler today confirmed rumors that it will discontinue the Dodge Magnum, the convertible Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire in 2008. In the same time frame, Chrysler will add the Dodge Journey, Dodge Challenger, Chrysler Aspen Hybrid, and Dodge Durango Hybrid to its portfolio. The company also announced as many as 10,000 job cuts.
"These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman and President. "Further, these product actions are all in response to dealer requests."
Chrysler also said it would make volume-related reductions at several of its North American assembly and powertrain plants. Shifts will be eliminated at five North American assembly plants which, combined with other volume-related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008.
These "volume-related actions" are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan (RTP) announced in February.
"We have to move now to adjust the way our company looks and acts to reflect a smaller market," added Tom LaSorda, Vice Chairman and President. "That means a cost base that is right-sized and an appropriate level of plant utilization."
Chrysler will eliminate shifts at five assembly plants, and take further volume-related actions at several other facilities. It will:
- Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and Jeep Compass.
- Drop second-shift operations at its Jefferson North Assembly Plant -- which builds the builds the Jeep Grand Cherokee and Jeep Commander -- in the first quarter 2008. It's expected that the plant will return to two shifts in first quarter 2010 with the introduction of new SUVs.
- Drop third-shift operations at the Toledo (Ohio) North Assembly Plant in the first quarter 2008. Toledo North builds the Jeep Liberty and Dodge Nitro.
- Drop third-shift operations at Brampton (Ontario) Assembly Plant in first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger and Dodge Challenger. The Dodge Magnum will be discontinued.
- Drop second shift operations at Sterling Heights (Mich.) Assembly Plant in first quarter 2008. Sterling Heights builds the Dodge Avenger and Chrysler Sebring sedans and Chrysler Sebring Convertible.
- In addition, Mack Avenue (Detroit) Engine Plant II will return to a traditional two-shift / two-crew operation in the first quarter 2008 after operating on a three-crew, two-shift, 120-hour-per-week (3/2/120) schedule. Mack II builds the 3.7-liter V-6 engine.