P. M. BRIEFING : Slow Sales Bring Chrysler Layoff

Chrysler Corp. announced slumping sales of small cars have forced the layoff of 400 workers at its Sterling Heights assembly plant.

The layoffs take effect July 7 when the plant, where Dodge Shadows and Plymouth Sundances are assembled, closes for model changeover.

Sales of the Shadow fell from 44,000 in the first five months of 1988 to 37,700 during the same period this year. Sundance sales dropped from 39,000 to 38,000 over the same period.

The layoffs may be due to increased auto production in Mexico, said United Auto Workers Local 1700 President Melvin Caldwell.

“They assembled 39,674 P-cars (Sundances and Shadows) in Mexico last year,” he said. “It’s hard to believe those are all for the Mexican market.”