FCA Extends Chrysler 200 Production Halt

Fiat Chrysler Automobiles NV will idle its Sterling Heights, Mich., plant for another three weeks because of slumping demand for the Chrysler 200 sedan made there.

The factory, already well into a six-week shutdown, was scheduled to resume output on March 14, Reuters reports. Now the company says the facility won’t reopen until April 4.

U.S. dealer inventories of unsold 200s ballooned to an average 217 days’ supply in January, according to Automotive News. Stocks fell to 147 days by the end of February—still well above the 65-day supply considered normal—as demand for the sedan plummeted 58% to only 6,600 units.

In January FCA CEO Sergio Marchionne said the company intends to phase out production of the 200 at Sterling Heights and the Dodge Dart small sedan at Belvidere, Ill. The plan is part of a company strategy to focus production of higher-profit trucks and SUVs in the U.S. and move lower-margin small car output elsewhere.