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Chrysler halts Neon production
Associated Press
Published September 20, 2005
DETROIT - After 11 years, Chrysler Group plans to end production of its spunky, low-priced Dodge Neon this week to make way for a sleek replacement.
The last Neon is scheduled to roll off the line with little fanfare Friday at Chrysler's plant in Belvidere, Ill., company spokesman Ed Saenz said Monday.
Chrysler, a unit of DaimlerChrysler AG, is spending $419-million to revamp the Belvidere production line so it can build multiple models, including the Dodge Caliber, which will replace the Neon. The Caliber is expected to go on sale early next year.
The Neon was introduced in January 1994 as a 1995 model, in both Dodge and Plymouth versions. It quickly became a favorite among young buyers for its styling and quirky marketing, including ads that said simply "Hi." With a starting price of about $14,000, it competes directly with popular Asian models like the Honda Civic and Toyota Corolla.
Neon sales had reached 1.5-million by the time the car was redesigned in 2000, but customers began to tire of the vehicle. Sales also took a hit when Plymouth stopped producing its version of the Neon in 2001. Neon sales fell by a third from 2000 to 2004, to 113,476.
The Caliber, which will be priced similarly to the Neon, has a more contemporary, wagonlike design.
[Last modified September 20, 2005, 01:54:19]
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