DaimlerChrysler to cut production at their Chrysler unit

US based automakers continue to prove that they are struggling to compete against the growing challenge from the Japanese companies.

The latest news coming in is that DaimlerChrylser has now said that they would be cutting second-half dealer shipments by 15 percent at their Chrysler unit as the sales of their pickup trucks and sport-utility vehicles are declining.

They are now aiming to deliver about 705,000 Chrysler, Jeep and Dodge vehicles to U.S. dealers for retail sale. This is down from 829,000 for the July-December period a year earlier. The original target was to deliver around 840,000 cars and trucks this half.

Dieter Zetsche, chief executive of DaimlerChrysler said in a statement on this decision: “We were hoping that we could find our way out of this situation by continuously reducing our production, but not significantly, and increasing our sales. The reality is that we fell short of those plans, and relatively significantly.”

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