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Chrysler to Drop Its Jeep Wagoneer

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From Reuters

Chrysler Corp., citing weak auto sales, announced Tuesday that it will discontinue a Jeep model and place 990 workers at its two Toledo, Ohio, Jeep plants on indefinite layoff.

The firm said it will end production of its Jeep Grand Wagoneer model in the fall of 1991, resulting in the layoff of 360 workers.

The nation’s third-largest auto maker also said a sluggish auto market is forcing it to trim production 11% beginning in May at its other Toledo facility.

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The move will affect an additional 630 hourly workers. The two plants employ a total of 4,900. Chrysler said some of its salaried work force in the Toledo complex would be cut as well, but specifics were not available.

The company blamed slow sales and a shifting sports-utility market for the demise of the venerable Grand Wagoneer, which has been in production for nearly 28 years.

The firm sold only 6,164 of the vehicles in the 1990 model year. Sales peaked at 23,776 units in 1978. Chrysler said it sold more than 771,737 versions of the Wagoneer since its introduction in 1963. The Stickney, Mich., plant, where the vehicle is produced, will be idled indefinitely after production ends.

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