Posted by mike on 2001/1/22 0:00:00 (887) reads
One of our readers emailed us about DaimlerChrysler's reversal of a decision to shut down the Jeep assembly plant in Toledo, Ohio - it seems that there is a higher demand for the Wrangler and Cherokee than predicted. Yahoo! Finance ran a story about the decision - here's a snippet:
The struggling Chrysler unit of German automaker DaimlerChrysler AG has canceled plans for week-long shutdowns at two plants, saying demand was running higher than expected.
Chrysler spokesman Trevor Hale said Thursday the company's Toledo, Ohio, plant which builds the Jeep Cherokee will operate the weeks of Jan. 22 and Jan. 29. Chrysler will also run its Windsor, Ontario, plant the week of Jan. 29.
Both plants had been scheduled to be down those weeks as part of Chrysler's plan to cut its first-quarter production by 26 percent over last year's output. Hale said the changes would increase production above the forecast by an unspecified amount.
``At the beginning of the year we took a very conservative and responsible approach,'' Hale said. ``However, our plans are flexible enough to react to demand.''
But Chrysler, which has said it will lose about $1.25 billion in the fourth quarter, has been hit hardest. DaimlerChrysler Chairman Juergen Schrempp has had to defend the merger of Chrysler Corp. and Daimler-Benz AG, denying reports of shareholder pressure to break up the company.
Its largest shareholder, Deutsche Bank AG , renewed its support for Schrempp and his strategies Thursday. Chrysler's new managers are scheduled to unveil a revival plan for the automaker Feb. 26.
Chrysler recently said it would stop building the Cherokee sport utility vehicle later this year, in favor of its new Jeep Liberty small SUV. New versions of the company's minivans, a staple of its sales and profits, have not lived up to expectations since going on sale last year.
Hmmmm... did the announcement of the Liberty coupled with the announcement of the end of the Cherokee force some on-the-fence purchasers to get the Cherokee before it is too late???
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