Chrysler to cut minivan production

Chrysler has followed rivals Ford and General Motors by announcing plans to cut back on the production of minivans in the US, as rising fuel prices drive consumers to opt for smaller vehicles.  ┬á Two factories in Missouri are affected, with one minivan plant in St Louis shutting down completely and another cutting back from two shifts to one. The reductions will lead to a cut of 2,400 hourly jobs.┬á┬á "The market is fairly slow and consumer confidence has been down," said Chrysler president Jim Press. "If we want to meet our financial targets, it is important to match our production to demand." ┬á┬á Sales of Chrysler vehicles in the US were down 25 percent in May. "This environment forces us to make some very difficult decisions," said Tom LaSorda, a Chrysler president and vice chairman. "It's important that we act now to better align ourselves with the current market reality, including the shift toward more fuel-efficient vehicles."┬á┬á Chrysler has also announced its intention to extend summer shutdowns at several of its assembly plants, some of which will close for four weeks, with others being down for as long as six or seven weeks.┬á┬á Last month, Ford said it expected to make a loss this year and revealed plans to cut the production of trucks and SUVs in favor of more fuel efficient models. ┬á┬á GM announced at its annual shareholder meeting early in June that it would close four SUV and truck factories in the US, Canada and Mexico in response to falling demand. GM plans to introduce a new compact in mid-2010 at its Lordstown, Ohio, plant, subject to final negotiations with state and local authorities.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á