Chrysler cut MPV production
The MPV, people carrier, or the Minivan as they call it in the States, is the latest victim of the American car companies’ knee-jerk reaction to the oil crisis, according to the beeb.
After GM’s decision to shut 4 SUV/truck plants in the US, Canada and Mexico as we reported back in June, it’s now Chrysler’s turn, shutting one plant in St. Louis and cutting shifts at another, affecting around 2,400 jobs.
GM realised that the gas guzzler was dead so they’re apparently focusing on smaller vehicles, so that’s a great reason to simply shut 4 plants and put nearly 10,000 people out of work. Why couldn’t they retool the plants?
We have a similar criticism of Chrysler for cutting Minivan production; Maybe American people carriers are a bit more thirsty than their European & Japanese counterparts, and maybe there are tons of 7 seater vehicles being driven around the U.S. with just one person in them, but isn’t a people carrier the best mode of transport for large families? Doesn’t it make more sense to take 7 people to the game in one larger vehicle rather than 2 smaller ones?
We don’t have an answer but we do question the blunt decision making of these car companies purely because we’d like to know the though processes behind their decision making; are the car companies simply blunt & aggressive machines? Do they care about their workers? Do they know something that we don’t?
Let’s put it this way: Many people are calling for stabilisation of oil prices, blaming rises on oil price speculators and pushing for increased production from oil companies, hoping to “flood” the market with more oil in order to affect market prices and bring the price down. As we have to keep reminding ourselves, oil is a finite resource and it is going to run out, therefore the price is going to continue to rise. Goldman Sachs’ own expert said oil would reach $200 a barrel (yesterday it was $143!)
If oil DOES come down any time soon then why would Chrysler shut their plants? If oil continues to rise then we know why.
The time of the big car does appear to be over, though some clever thinking would make MPVs affordable in the U.S. How about diesel engines, smaller engines, lighter vehicles? Do people really need all that sound-proofing and luxurious interiors – after all it’s a car not a palace. Understandably Americans have to drive longer distances than us Brits and Europeans, but foregoing the opulence might afford some gas.
The car industry needs more revolution and less knee-jerk reaction.
