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Chrysler plans $1.8bn investment | Chrysler plans $1.8bn investment |
(about 12 hours later) | |
Chrysler has announced plans to invest $1.8bn (£964m) in new vehicle projects and plans to expand plant in Detroit. | Chrysler has announced plans to invest $1.8bn (£964m) in new vehicle projects and plans to expand plant in Detroit. |
Expanding the Jefferson North plant will allow more flexibility and higher output, said the firm. | Expanding the Jefferson North plant will allow more flexibility and higher output, said the firm. |
The expansion will also create 400 jobs, said Chrysler's president Tom LaSorda during a car event in Michigan. | The expansion will also create 400 jobs, said Chrysler's president Tom LaSorda during a car event in Michigan. |
The news comes as the car manufacturer has embarked on cost cutting plans, by reducing the workforce and capacity to offset a slump in sales. | The news comes as the car manufacturer has embarked on cost cutting plans, by reducing the workforce and capacity to offset a slump in sales. |
"This investment enables us to produce a new generation of world-class vehicles that meet the demand of our consumers around the globe," said Mr LaSorda. | "This investment enables us to produce a new generation of world-class vehicles that meet the demand of our consumers around the globe," said Mr LaSorda. |
The plant currently produces the most popular model in Chrysler's line-up, the Jeep Grand Cherokee - but demand has been hit by high petrol prices. | The plant currently produces the most popular model in Chrysler's line-up, the Jeep Grand Cherokee - but demand has been hit by high petrol prices. |
Chrysler, Ford and GM have all been hit by falling demand for their vehicles - especially larger gas-guzzling models. | Chrysler, Ford and GM have all been hit by falling demand for their vehicles - especially larger gas-guzzling models. |
Consumers have been switching to more fuel-efficient models as the price of oil has risen sharply. | Consumers have been switching to more fuel-efficient models as the price of oil has risen sharply. |
In particular, sales of minivans, trucks and sports utility vehicles have all dropped significantly. | In particular, sales of minivans, trucks and sports utility vehicles have all dropped significantly. |
Mr LaSorda also said the car firm has singled out $1bn in non-essential assets that the firm would be able to sell. | Mr LaSorda also said the car firm has singled out $1bn in non-essential assets that the firm would be able to sell. |
Chrysler was bought by private equity firm Cerberus after Daimler decided to walk away from its huge investment in 2006. |
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