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Chrysler to Stop Making PT Cruiser

By Bernard Simon,
Financial Times
Posted: 2007-11-01 08:02:37
Chrysler is set to eliminate three slow-selling models, including the once-popular PT Cruiser hatchback, as part of a widening shake-up since its acquisition three months ago by Cerberus Capital Management, the private equity group.

Chrysler, the smallest of the three Detroit-based carmakers, has built more than 1m of the retro-styled PT Cruisers since the model was launched in 2000. But sales in September were 42 per cent lower than a year earlier. The PT Cruiser's appearance has changed little during its lifetime, and it has faced growing competition, including from Chrysler's own Dodge Caliber, which went on sale in 2006.

The other two models likely to be axed are the Dodge Magnum station wagon and the Chrysler Pacifica, a crossover vehicle that looks like a sport-utility vehicle but is built on the same platform as the company's minivans.

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Pacifica sales were 44 per cent lower in September than a year earlier. The three models set to be dropped were identified on Tuesday by the Detroit News, and confirmed by a person familiar with Chrysler's strategy.

In the latest of a series of senior management appointments since the Cerberus takeover, the carmaker this week named John Cataldo, a former General Electric executive, as vice-president of business development and mergers and acquisitions.

Mr Cataldo will spearhead Chrysler's drive to forge partnerships and joint ventures with other companies as a way of expanding its fledgling business outside North America.

2007-10-31 10:01:16
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Recent Comments

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1128 comments

Sandviper6 01:19:00 AM Nov 04 2007

Typical Marxist rhetoric that comes from unions. Take some economics classes. Unions are pricing their workers out of jobs.
__________________
That is in fact what happened in Germany prior to Adolph Hitler. Following WW-I through 1934 the German Labour Ministry backed German Worker's Wage demands because that was the largest source of govt income, tax on wages paid at source. The more the worker's made the more the govt made. The banks refused to loan German companies money. Companies were folding up, jobs being lost by the millions. It was a schizoid system, if you worked you made good money but few had jobs. The 1928 Ruhr Lockout is an example, the giant industries in the Ruhr Valley simply closed their doors and shut down in order to break the backs of the unions. That is why German Industry liked Hitler, he promised to end that system, Hitler forged a partnership between industry and workers then put the German export economy on a barter system for international trade with

Sandviper6 01:54:00 AM Nov 04 2007

The new owners of Chrysler is setting the stage for an alliance with the Chinese automobile industry.. A nationwide net work of dealers that will be selling vehicles made in China ...Cerebus will probably sell off HALFof there interest in Chrysler for more than they payed Daimler.. Look for Cerebus to buy the 20% retained by Daimler with money supplied by the Chinese just prior to announcing an alliance with China
__________________
Yes, I agree that is to be expected. Chrysler led off with a downsized Jeep Cherokee in China but has been outpaced by GM's Buick and VW's. Cerebus is going to play catch up and the way to do it is by partnering and opening their US dealerships to a joint venture produced China-Chrysler made car and truck line that will sell in both countries.

misterstuf 09:09:09 AM Nov 03 2007

PT Cruiser? Seems like a very popular car. Why not try to improve (a little more power) the once hot-selling item? Are the sales down because no one likes your car or are you not keeping up with improvements?
You will always be #3 in Detroit if you make moves like this one, Chry-baby.

killerbunnyokc 01:19:24 AM Nov 03 2007

It's clear: Virtually NO one in America speaks English... They get their 'news' from FAUX News... No one knows the difference among 'to', too, and 'two'; much less 'they' , 'there' and 'they're' (not to mention 'their') - NONE of you attended school? No wonder the Moron is the Dictator of America...

wincbest 12:27:53 AM Nov 03 2007

Their restructure should start at top levels salaries and bonuses and then make the cars affordable to the lower wage people. There is way to much money at top levels when the work is done buy the employes the business runs itself without the CEOs.All people around could live the rest of their live comfortable with just 1 yr pay and bonuses of a CEO.. They are scrapping some of the best attractions of their car line by getting rid of the Crossfire and the Pacifica. Make them affordable to the lower class of workers that run America.

mcbadapfel 11:57:18 PM Nov 02 2007

jERRYJASH.....YOU'RE SOOOO DARNED CUTE, i JUST WANNA PINCH YOUR LITTLE BUTT!

mcbadapfel 11:57:17 PM Nov 02 2007

jERRYJASH.....YOU'RE SOOOO DARNED CUTE, i JUST WANNA PINCH YOUR LITTLE BUTT!

jerryjash 10:39:28 PM Nov 02 2007

If Cerebus drops the Magnum ,,,,, The MAGNUM S R T will be one of the most desired collector cars in comming years... I have a Magnum S R T and it is the most fun car to drive that I have ever owned And I have had a couple of new Corvetts in my 74 years

jerryjash 10:25:07 PM Nov 02 2007

The new owners of Chrysler is setting the stage for an alliance with the Chinese automobile industry.. A nationwide net work of dealers that will be selling vehicles made in China ...Cerebus will probably sell off HALFof there interest in Chrysler for more than they payed Daimler.. Look for Cerebus to buy the 20% retained by Daimler with money supplied by the Chinese just prior to announcing an alliance with China

kjayson13 10:23:38 PM Nov 02 2007

CHANGE PT CRUISER BACK TO OLDER LOOK AN SALES WILL GO BACK UP !!GET RID OF NEON KEEP 300, THEY ARE COMPLETLY CRAZY IF THEY GET RID OF MAGNUM

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