Chrysler announced today that it is indefinitely halting production at its St. Louis South minivan plant starting October 31. Also, beginning September 2nd, Chrysler will also cut production at its St. Louis North truck plant to one shift. Chrysler’s Tom LaSorda also said that it is not likely that the plants will repoen.
Chrysler has told its dealers that it will raise prices by 2 percent for most of the remaining 2008 models. The price increase, which will start today, will be carried over to the 2009 models. According to executives, the price increase comes from the rise in prices for commodities such as steel.
“The average 2 percent increase brings total model year price increases in line with key competitors,” said Chrysler spokesman Stuart Schorr. “It does not affect vehicles already in dealer inventory. Incentives would not be changed.”
Popular hybrids sold in the U.S. either no longer qualify for tax breaks or are about to see them cut very sharply. Starting tomorrow, the Honda Civic Hybrid will see a cut in tax credit from $1,050 to $525. Toyota Prius and the Camry Hybrid saw their $3,150 tax credits disappear last fall. The Prius and Civic rank first and second in terms of fuel-economy followed by the Camry Hybrid at no.3.
Why would the government make such a move when gas-prices are at an all time high? Well, according to the 2005 federal law that started the hybrid tax credits, the tax break begins to phase out after an automaker sells 60,000 qualifying vehicles.
