Chrysler Suspends Natural Gas Vehicle Production

07/11/96

Chrysler Corporation announced that it has suspended production of natural gas vehicles, effective with the 1997 model year, while claiming it is committed to the natural gas vehicle market. Chrysler blamed the suspension on the high price of storage tanks, which it tied to low demand. Chrysler and its natural gas storage tank supplier, Comdyne Cylinders Inc announced that they will assess the market and explore options to reduce tank costs.

Since production of the natural gas vehicles began in 1992, Chrysler has sold 4,000 full sized Dodge Ram vans, Dodge Caravans, Plymouth Voyager minivans, and full-sized Dodge Ram pick-up trucks.

Chrysler will produce 1996 models through the summer to fill outstanding orders.

Paul Dever -- The Auto Channel