WSJ: Chrysler To Cease Production At St. Louis Minivan Plant; Possibly By December

[Perian]

Link: http://online.wsj.com/article/SB1214..._us_whats_news

Chrysler to Cease Production At St. Louis Minivan Plant
By JOSEE VALCOURT - June 30, 2008 2:20 p.m.

DETROIT -- Chrysler LLC is expected to announce Monday the idling of a minivan plant near St. Louis and production cuts at other plants as U.S. sales of larger vehicles continue to falter, people familiar with the matter said.

The plant, which is known as St. Louis South and is located in Fenton, Mo., assembles the Dodge Caravan and Chrysler Town & Country minivan. The same vehicles are also assembled at a plant in Windsor, Ontario.

Chrysler will announce the St. Louis South plant will cease production as early as December, people familiar with the matter said.

It employs about 1,500 workers and operates on one production shift a day.

Sales of minivans have been trending down for years. This year the decline worsened in response to higher gas prices and other economic woes, including a soft housing market and credit crunch gravitate to more fuel-efficient and smaller vehicles.

Minivans are Chrysler's No. 1 product. The auto maker, closely held by Cerberus Capital Management LP, launched its newest minivans last fall and was hoping to nab a slew of car buyers in the spring, when many families tend to shop for the family-haulers.

However, the auto industry was caught off guard this year by a dramatic shift in consumer preference that has left scores of pickups, large sport utilities and minivans in park.

Sales of the Dodge Caravan fell 25.1% and 10.5% for the Town & Country in May from the same time a year ago, according to Autodata Corp.

[Perian]

This plant would be a great fit for Volkswagon...We'll find out on July 8th.

[eurohazard]

That sucks.

[SUPERBADD75]

wow, Caravan sales down by a quarter. this is not good for a car company that's already barely limping and has no (respectable) small or midsize sedans. this is a kick to the crotch of Chrysler for sure. i feel awful for the 1,500 families that are about to be affected by this. just more doom and gloom as we finally pay for the decades of cheap gas.

[Clownzilla]

Originally Posted by Perian

This plant would be a great fit for Volkswagon...We'll find out on July 8th.

Why is that?

[regfootball]

well had chrysler not screwed up the styling on the new vans.......

[xyagentguy]

well had chrysler not screwed up the styling on the new vans.......

Isn't that the truth, though? They are HIDEOUS. Those back-ends on those vans might as well have been from the early 90s.

[Power630]

Everybody is moving away from 20 mpg vehicles. Soon cross overs will suffer same faith. When price of gas hits $5 per gallon cross overs will be just as bad as full size suv's are now. That said. I think GM, Ford, and Chrysler will have to file for Chapter 11. They are very dependent on tucks and cross overs. Detroit 3 have very bad reputation in making small cars Plus their reputation among younger generation is very bad. Chapter 11 will happen sooner then later for Detroit 3. One of them might not survive.

[NfamousZ24]

You would think that Minivan sales would have gone up because of the high gas prices.

[Hitman1970]

Originally Posted by regfootball

well had chrysler not screwed up the styling on the new vans.......

or their small or mid-size cars. Styling was what Chrysler had going for it before Daimler got their claws into them and it has been down hill ever since. The exception of the successful LX platforms not withstanding.

[Power630]

Originally Posted by NfamousZ24

You would think that Minivan sales would have gone up because of the high gas prices.

It is a 20 mpg vehicle. People are running away from them. Gas will hit $5 per gallon soon. What do you think will happen to 20mpg vehicles? They will look like 10 mpg trucks.

[Power630]

Originally Posted by Hitman1970

or their small or mid-size cars. Styling was what Chrysler had going for it before Daimler got their claws into them and it has been down hill ever since. The exception of the successful LX platforms not withstanding.

Chrysler has a small Car?????? Since when? I do not consider caliber in same class as civic or corolla. All of their cars are poor quality and very thirsty. That is why chrysler is suffering so bad now.

[Hitman1970]

Originally Posted by Power630

Chrysler has a small Car?????? Since when? I do not consider caliber in same class as civic or corolla. All of their cars are poor quality and very thirsty. That is why chrysler is suffering so bad now.

Bingo. It is a small car. All you have to do in sit in the small cheap interior to figure it out. Interiors have been the domestics weakness for a long time. GM and Ford starting pulling their heads out a couple of years ago. Chrysler is still doing a polyp self-examination in this area.

Fuel economy woes are more recent. Although, Chrysler powertrains have always been very reliable. Which is why it costs them almost nothing to give you a Lifetime powertrain warranty. Everything else will fall apart long before the engine or tranny give out on you.

[CrunkedRL]

Originally Posted by Clownzilla

Why is that?

Well because the VW variant of the Chrysler minivans are expected to hit the showrooms by the third quarter of this year. The Croutan (as I like to call it) looks far better than the Chrysler/Dodge version IMO. It would have been nice if VW could have used some of their diesel technology as an optional choice for their mini.

[jarsworldcom]

Wow bad news for the StL region.