DECEMBER 2, 2000
DaimlerChrysler cuts back US production
THE beleaguered German car company DaimlerChrysler AG has announced that it is cutting back production at its Chrysler facilities in the United States because of falling sales. The company is planning to stop production at seven of its facilities for a week at a time because stocks are too high. Sales of Chrysler cars fell last month by 12%. Chrysler posted a half billion dollar loss in the third quarter this year.
The news adds to the pressure on DaimlerChrysler boss Jurgen Schrempp. Her is currently facing law suits from the United States claiming that he lied to Chrysler investors in order to secure the deal between Daimler-Benz and Chrysler. In addition to that he is facing calls to resign from German investors who are unhappy at the falling share price of the company.
Schrempp has been one of the biggest supporters of the Formula 1 program with McLaren and his departure could weaken the company's attachment to the sport, although as a 40% shareholder in McLaren it is unlikely that the firm would actually pull out.
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