Chrysler to Up Truck Production for 1997

10/16/96

Reuters has reported that Gary Valade, Chief Financial Officer for Chrysler Corporation, has announced that the automaker will boost its truck production capacity by 190,000 vehicles next year. The plan includes establishing production of a new Dodge sport/utility vehicle in Newark, Delaware.

Valade said the capacity additions also include upping the speed on an assembly line speed at Chrysler's St. Louis North facility. That increase will have workers in St. Louis cranking out an additional 20,000 Dodge Ram pickup trucks per year.

Valade said 155,000 units worth of capacity annually will come from the addition of sport/utility production at Newark plus enhancements to plants that build Dodge Dakota pickup trucks, Jeep Wranglers, and Jeep Cherokees. The remaining 15,000 units of annual production capacity will derive from adding a third shift to Chrysler's Eurostar joint venture plant in Graz, Austria, where the company makes minivans and sport/utility vehicles. Chrysler's partner in the Grasz venture is Steyr-Daimler-Puch AG.

Chrysler will reportedly base the new vehicle from Newark on its all-new Dodge Dakota pickup truck. The new four-door vehicle is expected to fill the Dodge sport/utility vehicle slot vacated when Chrysler discontinued the two-door Ram Charger several years ago.

Valade said the corporation expects the additional truck capacity to allow it to spread its fixed costs over more vehicles, increasing profitability. He added, "We can get a few more pieces out there."

Paul Dever -- The Auto Channel