Chrysler LLC has killed production of its only hybrid vehicles, the Dodge Durango and Chrysler Aspen SUVs, which have only been on showroom floors for less than a month, according to a Bloomberg report.
The company, which is reportedly considering combining operations with GM (NYSE: GM) to survive tough economic times, will shut down production at its Newark, Delaware, plant by December 31. The plant produces both gasoline and hybrid-electric versions of the two SUVs.
Hybrid SUVs have done reasonably well for companies like Toyota and GM over the last few years, but with significantly higher gasoline prices and cut-backs in consumer spending, these vehicles, which still have low gas mileage compared to small vehicles, aren’t selling well enough to justify keeping the plant open, according to the report.
In launching these vehicles earlier this month, Chrysler was well behind the curve. The company, which relies heavily on large vehicle and mini-van sales, has seen sales drop by 25% this year, compared to 13% for the rest of the industry.
Chrysler has no plans for other hybrid vehicles until 2010, when it says it will sell at least one hybrid vehicle, and perhaps begin producing a hybrid version of its Dodge Ram pickup.
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