DaimlerChrysler AG's Chrysler Group has cut production of its legendary Hemi V-8 by nearly 20 percent as more consumers decide to trade power for fuel efficiency and the company prepares for lower light-truck sales through the year.
Chrysler recently lowered Hemi production to 1,300 a day from 1,600 at its Saltillo factory in Mexico, company officials said.
The reduction indicates the automaker has been forced to pull back production on its profitable Hemi -- along with its standard 4.7-liter V-8 engine -- as it whittles SUV and truck output in the third and fourth quarters due to sluggish sales.
The production cut to the popular engine comes as the company struggles with lagging SUV and truck sales, the vehicles which traditionally carry the powerful motor.
The Dodge Durango, a full-size SUV, has seen sales fall 41.1 percent for the year and the Dodge Ram pickups have been down 11.7 percent. Overall, light truck sales for Chrysler are down 12.9 percent for the January through August period, compared with 2005.
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