CHRYSLER MAKING CUTS, FACING PROBLEMS

DaimlerChrysler AG's Chrysler Group is cutting production 16% for the second half of the year and CEO Dieter Zetsche has said he will consider further restructuring measures. Zetsche said the cuts are necessary because:

1. the increased price of gasoline has changed consumer preferences;
2. slowing demand for big trucks; and
3. rising health-care costs for unionized American workers.

These problems have also hurt Ford and General Motors, but came as more of a surprise at Chrysler where they had put together twelve consecutive profitable quarters.

WSJ.com