Chrysler May Drop Durango, Aspen
The bad news keeps coming over at Chrysler. Today, the automaker announced that its Newark, Del., assembly plant would shut down indefinitely at the end of 2008. Shutdown of the 244-acre complex will mean the loss of about 1,000 jobs producing two Chrysler products: the Dodge Durango and Chrysler Aspen, two full-size SUVs.
According to USA Today, Chrysler officials aren’t yet saying if this means the end of those SUVs, or if they will be built at another plant. Bearing in mind that moving production of the SUVs would require costly retooling, it’s possible that the two will be discontinued. Chrysler has sold about 17,000 Durangos and 17,500 Aspens so far in 2008; Chrysler sold about 140,000 Durangos alone in 2004.
What does this mean to consumers? The likely elimination of two so-so SUVs in a segment that is already contracting. Meanwhile, the Chrysler Aspen Hybrid (which we recently tested) and Dodge Durango Hybrid were launched just this August as Chrysler’s first stab at hybrid vehicles. The pair are the cheapest full-size hybrid SUVs on the market, each priced at around $45,000, and each is available with a $2,200 tax credit. Chrysler’s press release gives no indication of what will happen to those models, but they are built at the same Newark facility.
Chrysler cutting 1,825 jobs; GM will cut 401(k) match (USA Today)
