Chrysler to Shut Down Delaware Plant in 2008 and Reduce Production at Toledo

While Cerberus is reportedly talking with GM and Renault (click here for details), Chrysler continues to close factories and lay off workers in its North American sites. Today the American automaker said that it plans to close the Delaware Assembly Plant by the end of December, 2008 instead of late 2009 as was the original plan which was announced in February 2007. The closure of the Delaware plant that builds the slow-selling Dodge Durango and Chrysler Aspen models will affect approximately 1,000 jobs. -Continued

Additionally, Chrysler LLC announced the elimination of one shift of production at its Toledo North Assembly Plant in Ohio. The shift reduction at Toledo North which produces the Dodge Nitro and Jeep Liberty SUVs will be effective December 31, 2008, and will affect around 825 jobs.

"The markets are facing unprecedented turmoil and we are in a time of historic change in the auto industry," said Frank Ewasyshyn, Executive Vice President - Manufacturing, Chrysler LLC. "These tough, but necessary steps are vital to our long-term viability. However, these headwinds will not prevent Chrysler from aggressively pursuing its mission to respond to consumers with products they demand, like the all-new Dodge Ram, which was recently named 'Full-Size Pickup Truck of Texas'.

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