Reuters reports that FCA is to idle its Sterling Heights Assembly Plant, Michigan, which builds the Chrysler 200 for six weeks beginning on 1 February. According to the report, the two-shift plant has been periodically shut over the past few months on slack demand for cars in the US. Data from Automotive News suggest that the vehicle's inventories ballooned to 148 days' supply on 1 January, compared with 98 days on 1 December 2015.
Significance: Although Chrysler 200 sedan sales were up 52% over the course of 2015, according to FCA reporting, a change in incentives in December appears to have contributed significantly to the sedan's sales falling by 47% year on year in the final month of December. Additionally, CEO Sergio Marchionne said that both the Chrysler 200 and Dodge Dart mid-size sedans will be allowed to "run their course", but the company will shift to finding a partner to source future mid-size sedan entries; that announcement further indicates that FCA is not satisfied with the performance of either sedan and may also affect sales for the rest of 2016 for those customers who are aware that the cars will eventually be dropped. Marchionne did not indicate when the "course" for these vehicles will end.
