DaimlerChrysler to Curtail Production At 3 North American Plants - Overtime in Others

October 18, 2002

Dan Hart wrting for Bloomberg News reports that DaimlerChrysler AG's Chrysler unit will shut two plants in Canada and one in Delaware for a week beginning Monday because of reduced demand, the first time it has idled three factories since April.

The third-largest automaker in North America will idle a combined 5,975 workers, spokeswoman Shawn Morgan said. The factories in Brampton and Windsor, Ontario, build Dodge Intrepid and Chrysler Concorde sedans and Dodge Ram vans, while the Newark, Delaware, plant makes Durango sport-utility vehicles.

Durango sales fell 5.7 percent in September from the year-earlier month, while Chrysler's sales gained 18 percent last month, aided by no-interest loans and discounts. U.S. auto sales increased 2.9 percent in September and gained 1 percent the first nine months of this year.

The Brampton factory was last idled the week of Sept. 23, while the Pillette Road factory, which will be permanently closed in July, was temporarily shut the weeks of Sept. 30 and Oct. 7. The Newark plant was last shuttered the week of Sept. 16. Chrysler's Toledo, Ohio, factory that makes Jeep Wranglers has been shut this week and last week, Morgan said.

Chrysler will have employees working overtime at five plants where the company needs more models, such as a Toledo plant that makes Jeep Liberty sport-utilities, Morgan said. General Motors Corp. will have employees at 12 plants working overtime next week. Ford Motor Co. doesn't discuss overtime in advance.