Chrysler to boost production of PT Cruiser

Associated Press

When the PT Cruiser was introduced in March 2000, Chrysler estimated sales of 70,000 models a year. Instead, 175,000 of the retro cars have been sold. Associated Press

The automaker hopes that expanding production by 80,000 vehicles late next year will help it meet customer demand.

The company's Chrysler division couldn't build enough 2001 models to meet orders this past year — costing the company sales at a time when it is struggling to rebound from lingering financial troubles.

DaimlerChrysler plans to spend $300 million to increase production of the retro-designed car beginning in the fall of 2002 at its assembly plant in Toluca, Mexico. That will bring annual production to 310,000 PT Cruisers.

"The added production will help close the gap between supply and customer demand," Dieter Zetsche, Chrysler's president and chief executive, said yesterday in a statement released to reporters touring the company's new Jeep plant in Toledo.

About 175,000 PT Cruisers have been sold since the model was introduced in March 2000.

Chrysler initially estimated sales of 70,000 PT Cruisers a year. The vehicle is priced from $16,000 to $22,000, with an average sales price of $20,000.

Chrysler earlier this year increased by 50,000 the number of PT Cruisers made in Graz, Austria, for distribution outside the United States, Mexico and Canada.

Chrysler considered adding the PT Cruiser production at several other plants, including its production plant in Belvidere, Ill., before settling on its plant in Mexico, said Gary Henson, the company's head of manufacturing.

Chrysler said all vehicles made at the Toluca plant will be sent to North American dealerships.

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