Chrysler is to delay adding a second shift to an Illinois plant by more than a month amid “continued stresses” on parts suppliers.
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The company will resume the shift at the Belvidere Assembly Plant in mid-November rather than the originally announced 5 October, Dow Jones reported.
Chrysler has said earlier it needed the second shift to build an additional 10,000 Dodge Calibers by the end of the year to restock US dealers after an unexpectedly strong response to the ‘cash for clunkers’ government incentive programme last month reduced inventory levels.
The report noted that all three Detroit automakers had announced production increases during the past month, applying pressure to suppliers which had cut jobs and slowed output to match the slump. Within a matter of days, suppliers were expected to begin churning out more parts to meet this new demand.
Chrysler was the first company to publicly admit that the strain on suppliers had caused it to change production plans, Dow Jones noted.
Ford earlier this month said it had slowed production in Canada due to an unidentified problem with part shipments, the report added.
