Struggling Chrysler Cuts Back on New Products

Chrysler, the scrappy U.S. auto maker that twice avoided bankruptcy in the last 20 years, has canceled or delayed several new vehicles to staunch its financial bleeding, people familiar with the plans said. The company, now a unit of Germany’s DaimlerChrysler, has killed plans for a full-size Dodge sport-utility vehicle, a larger Jeep Grand Cherokee SUV and a Chrysler convertible called Hemi C, sources said. Chrysler also will delay the overhaul of the Grand Cherokee scheduled for 2004. Chrysler executives have said the unit will show a $528-million loss Thursday when DaimlerChrysler reports third-quarter results. DaimlerChrysler’s stock closed off $1.16 at $45.19 on the NYSE, just above its 52-week low. Some analysts believe it has yet to hit bottom as Chrysler profit will continue disappoint.