| Chrysler part of the used to be Detroit's Big | | | | that are continuously losing sales as US gasoline |
| Three and producer of American Motors catalytic | | | | prices soared nearly to $3 a gallon. Another |
| converter is now down to being the fourth-largest | | | | reason for Chrysler's decision to divert its |
| US automaker. And just recently it has announced | | | | production target is the fact that the US |
| that it is dropping its plans for a new Imperial | | | | Congress is also considering an increase in |
| luxury sedan due to the rising gasoline prices and | | | | fuel-efficiency standards. |
| tougher fuel-economy regulations. | | | | Tom Libby, an analyst at marketing-research firm |
| It can be noted that the Senate has passed a bill | | | | J.D. Power & Associates in Westlake Village, |
| last month calling for automakers to raise their | | | | California said, "It makes sense not to build a |
| average fuel mileage to at least 35 miles a gallon | | | | high-end, lower-volume car when the direction of |
| by 2020 the same proposal in the House would | | | | the market is moving toward smaller vehicles. If |
| also hold manufacturers to the same standard by | | | | there is a hole left in Chrysler's product lineup |
| 2018. | | | | without the Imperial, it's a not a hole in the |
| Chrysler's executives have made the decision | | | | growing part of the market." |
| within the past few weeks according to the | | | | Chrysler has also planned to pull the production of |
| automaker's spokesman Ed Saenz. The Auburn | | | | a new vehicle from the Brampton plant if the |
| Hills, Michigan-based automaker has unveiled its | | | | Canadian Auto Workers didn't agree to give up a |
| Imperial two years ago and has scheduled the | | | | wage premium of about C$125 a week. The union |
| production to start in 2009 in Brampton, Ontario. | | | | has initially rejected the pay provision but then |
| Saenz said, "There was no business case for us | | | | changed its decision last March 11 giving way for |
| to bring it to the market. We will continue to look | | | | the planned investment. |
| for a future product for the plant." He also added | | | | Chrysler is being sold by parent DaimlerChrysler |
| that the decision has put $597 million of | | | | AG to Cerberus Capital Management LP which is |
| investment in the factory on hold but will not | | | | purchasing 80.1 percent stake in Chrysler in an |
| affect any of the plant's 3,500 jobs. | | | | agreement that includes a $7.4 billion investment |
| Chrysler will be investing $3 billion in order to | | | | and will be completed this quarter. |
| produce more fuel-efficient engines and other | | | | It was the Windsor Star in Windsor, Ontario that |
| powertrain components. It is no secret that the | | | | reported the change in plan of Chrysler which is |
| automaker has been badly hurt by its reliance on | | | | not to go on with the production of the Imperial. |
| pickup trucks, sport-utility vehicles and minivans | | | | |