Chrysler 200 Production Will Continue Hiatus until April
Earlier this year, Fiat Chrysler Automobiles surprised the industry by putting the production of the 2016 Chrysler 200 on hold. This hold, which was originally meant to last until the middle of March, is now being extended—much to the chagrin of Chrysler’s Sterling Heights, Michigan assembly plant’s employees.
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Chrysler’s decision to put the 200 mid-size sedan’s production on hold—which started on February 1— was due to a decrease in demand. The lowering of fuel costs caused the demand for more fuel-efficient vehicles to lessen, therefore making mid-sized vehicles less popular.
It’s because of this that the Italian-American carmaker made the smart business decision to cut the Dodge Dart and the Chrysler 200 from its lineup to focus more on its SUVs and crossovers. While the Dart and 200 are beloved in the industry, they aren’t necessarily the current go-to cars for some consumers.
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The company is lending a helping hand to its employees, though, by giving the Michigan plant’s 2,100 UAW employees 74% of their base pay rate, even though they are currently not working. This is at a detriment to the company’s bottom line, which shows that Fiat Chrysler is putting its employers first.
Currently, Fiat Chrysler’s head honcho Sergio Marchionne is on the hunt for a partner to help build Chrysler’s next generation of small- and medium-sized vehicles. The list includes the likes of Mitsubishi and Hyundai, along with several Chinese companies.