Chrysler Hastens Cost-Cutting Efforts

Chrysler Corp. says it is accelerating its cost-cutting in response to slower car and truck sales this year.

The No. 3 domestic automaker declined Thursday to comment on a Wall Street analyst’s report that Chrysler plans to cut $1 billion over the next few years from its annual $4.5 billion capital spending budget.

“We have internal targets, but we’re not going to comment on those,” spokesman Steve Harris said. “We’ll try to achieve as much as we possibly can.”

Harris confirmed Chrysler has imposed a hiring freeze, cut overtime and placed new limits on travel. It is also looking at capital expenses that can be pared. The cuts are seen as necessary to maintain profit margins during the sales slowdown.

“We’ve just sort of racheted up what we were doing as the market has softened,” he said.

Chrysler said its current new product programs will not be cut, but the cost-cutting could delay or cancel vehicle programs still under consideration.