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Chrysler Minivan Plant To Be Closed

Pickup Truck Plant To Have Shift Cut

Tuesday, July 1, 2008 – updated: 12:58 pm EDT July 1, 2008

Chrysler said it will close one St. Louis-area factory and cut a shift at another.

The automaker said Monday that it will shutter the St. Louis South plant effective Oct. 31. The plant makes minivans.

The St. Louis North plant makes full-size pickups and will be cut from two shifts to one effective Sept. 2.

Chrysler President and Vice Chairman Tom LaSorda said the actions are in response to the U.S. auto sales slump and declining demand for minivans and pickups.

"The auto industry is going through some turbulent times -- a slow economy, including mortgage crisis and the weak housing market, escalating oil prices, and rapid consumer shifts from trucks and SUVs to smaller, more fuel-efficient vehicles," LaSorda said. "We continue to meet and exceed our financial targets, and the company is better positioned than it was last year. But this environment forces us to make some very difficult decisions."

LaSorda said the company has no plans to reopen the minivan plant.

The moves mean the loss of 1,500 jobs at the minivan plant. It wasn't clear if the company would ever recall 900 who will be laid off at the pickup truck plant.

Jim Press, president and vice chairman of Chrysler, said the company remains committed to the Dodge Ram truck and Chrysler Town & Country and Dodge Grand Caravan minivan markets.

"The Chrysler and Dodge minivans have held a leadership share in a shrinking market and we believe in the long-term viability of the pickup market," Press said. "We are clearly in a challenging environment, but continue to be focused on building a profitable enterprise for the long term. These actions will help us achieve this goal."