Chrysler Reduces Production Due to Dropping Minivan and Truck Sales

30 June 2008

In response to larger economic conditions and dropping sales, Chrysler LLC announced that it will indefinitely idle the St. Louis South Assembly Plant effective 31 October 2008 due to volume declines in the total minivan vehicle segment.

The South Assembly Plant produces the Dodge Grand Caravan and Dodge Cargo Van for North American market, and the Chrysler Grand Voyager LHD and RHD for the export markets.

Chrysler will also reduce operations at its St. Louis North Assembly Plant from two shifts to one shift, effective 2 September 2008. St. Louis North builds the Dodge Ram Standard and Quad Cab Pickup (Models 1500, 2500 Light and Heavy Duty).

These measures will lead to a reduction of approximately 2,400 hourly jobs (1,500 at St. Louis South, 900 at St. Louis North).

Light-duty trucks account for about 70% of Chrysler’s US sales.