From the Desk of Mike (The Hammer) Garvin

Chrysler’s new owner may soon
terminate some overlapping models

As early as this month, Chrysler might announce the termination of a few models within the group that overlap each other.

A few of weeks ago, General Motors and United Auto Workers agreed to a new labour contract, but GM had to reveal their planned product line so their employees would be sure the plant they worked in would still be operational a few years down the road. Chrysler doesn't want to give such guarantees, which is one obvious clue that various models will be sent out to pasture.


2008 Chrysler Sebring

Analysts mentioned some of the models that would be sent to the guillotine: the Chrysler Sebring sedan, which competes with the Dodge Avenger, the Chrysler Aspen, which competes with the Dodge Durango, the Dodge Nitro, which competes with the Jeep Liberty, and the Jeep Commander, which competes with the Grand Cherokee. Even the Durango might be axed, as sales have slid 30 percent this year.

Things are even more complicated in Canada, since the vast majority of Chrysler dealers carry all three brands and their products must share the same crowded showroom floor.

Cerberus Capital Management LP, Chrysler's new private owner, wants to turn the company around and said it will seek overseas partnerships to cut down production costs, which means the jobs of several of the 49,000 factory workers are on the line.
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