Car manufacturer DaimlerChrysler has announced that it is to reduce production at its US subsidiary, Chrysler, during the second half of the year.

According to a statement from the company, it is looking to cut the number of vehicles it delivers to dealers during the second six months of 2006 by 47 per cent compared to the same period in the previous year.

DaimlerChrysler director, Dieter Zetsche, announced that 705,000 Chrysler vehicles will be delivered to dealerships during the second half of this year, down from the original estimate of 840,000 units.

One of the main reasons for the downward revision, Mr Zetsche explained, is that the Chrysler has suffered poor sales due to its failure to adapt to current demand for fuel efficient vehicles.

It appears that the current market trend for low emission and fuel efficient cars has had a negative impact on Chrysler sales in the US and there has been a lack of interest in Chrysler's core market of four-wheel-drives and vans.

The news comes following last week's profit warning announced by DaimlerChrysler, which was blamed largely on the falling sales at the company's US subsidiary.


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