Chrysler to slash production as sales of trucks and minivans suffer

Daimler Chrysler is agian ready to cut production by 135,000 vehicles to help reduce the dealer inventory in response to falling sales of its large pickups, SUVs and minivans. The announcement comes after Chrysler said Friday that it expects its third-quarter losses to more than double. With the demand in trucks and minivans going down due to the rise in gas prises, Chrysler is trying to curb the market by decreasing the amount of minivans and trucks produced. With oil as a complement to buying cars, consumers will try and forcast the price of crude oil in order to determine whether they want to purchase a brand new minivan or truck. The market is already being flooded with other manufacterers and compariable products that produce better fuel economy and better vehicles. Will the reduction in supply help the Chrysler cooperation try to sell more trucks and minivans? Will this reduction in trucks and minivan manufactering have other unintented consequences? We can only wait and see if this plan works for the Chrysler cooperation.