Chrysler Cuts 1st-Quarter Production Estimate

The Chrysler arm of DaimlerChrysler sharply cut its first-quarter production estimate, after similar steps by General Motors Corp. and Ford Motor Co. to deal with slumping demand for new cars and trucks. Chrysler slashed its estimated production for the first quarter by 26% to 678,700 vehicles, from 916,000 in the same quarter of 2000. The move signals that Chrysler will continue to idle plants longer than the several temporary shutdowns already announced. A Chrysler spokesman contended the comparison with 2000 was skewed by the unusual surge in output of minivans last year before the new models arrived. Last month, GM cut its forecast by 15%, and Ford cut its forecast by 17%. U.S. auto sales declined 8% in December, and the brunt of the decrease came in sales of GM, Ford and Chrysler vehicles, while foreign auto makers gained market share. DaimlerChrysler shares closed off 80 cents at $43.96 on the New York Stock Exchange.