Chrysler will indefinitely idle the St. Louis South Assembly Plant effective October 31, 2008, due to volume declines in the total minivan vehicle segment.

Chrysler will also reduce operations at its St. Louis North Assembly Plant from two shifts to one shift, effective September 2, 2008. St. Louis North builds full-size trucks.

These measures will lead to a reduction of approximately 2,400 hourly jobs (1,500 at St. Louis South, 900 at St. Louis North).

Chrysler is committed to working with the UAW to address the manpower reductions in a socially responsible manner. As we have done in the past, the UAW and management leadership will hold employee meetings to review the special program offerings at affected locations.
Chrysler 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,” said Jim Press, President and Vice Chairman – Chrysler LLC. “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.”