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Freep: Chrysler slashing 200 production

by David Zatz on

FCA’s plan to cut Chrysler 200 production to meet their natural low-incentive sales levels has already brought about a six week layoff for 3,000 workers.  The plant is set to stay closed until March 14, and to shut down again in April, according to the Detroit Free Press.

The newspaper quoted IHS Automotive as saying that Chrysler’s new goal is making 120,000 200s for the year, versus 189,000 last year. Inventories of the 200 were higher than 100 days of sales at the start of the month. The original goal was 220,000 per year.

There have been rumors that FCA will move truck production to Sterling Heights, which would end the problems there; Warren Truck would then be converted to other products, possibly new rear wheel drive Dodges or Jeeps.  The move could occur before the next-generation Ram, due in 2018, since the Ram remains capacity-constrained (the Freep article assumed the plant and model changeover would happen at the same time).

The 200 is slated to be replaced by another automaker’s car at the end of its projected lifespan, likely in three to five years.

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