P.M. BRIEFING : Chrysler Boosts Cost-Cut Plan

Chrysler Corp. is adding half a year and $1 billion to its cost-cutting program, boosting the target to $2.5 billion by June, 1991, Chairman Lee Iacocca said.

Iacocca said in an interview today that the company is near the $1.5-billion target set for the end of this year. Without the cuts, Chrysler would not be profitable, he said.

Wall Street analysts and company officials expect Chrysler to post a substantial loss in the third quarter, mainly because of an interruption of minivan production.

During the first half of the year, Chrysler earned $251 million, down 64% from last year.

In October, 1989, Chrysler began its cost-cutting program with an initial target of $1 billion by the end of 1990. That was raised to $1.5 billion, and now Iacocca said it will be $2.5 billion by next June.