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Chrysler cruises to Europe
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March 20, 2000: 11:09 a.m. ET
Hot PT Cruiser to be built in Austria next year, increasing output 28%
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NEW YORK (CNNfn) - DaimlerChrysler AG said Monday it plans to add European production for its new PT Cruiser, just as the first vehicles are due to arrive in dealer showrooms in the United States.
European production is to start in summer of 2001, and equal a 28 percent increase in capacity for what is expected to be a hot-selling and profitable model.
The PT Cruiser is a hybrid of a sport/utility vehicle, minivan and car that has generated a great deal of industry and consumer interest. Chrysler has received more than 300,000 requests for information about the vehicle since it debuted at auto shows last year. It has a distinctive design meant to recall sedans of the 1930s.
 The vehicle will be produced in Europe at a Voyager minivan plant known as Eurostar in Graz, Austria. The plant will be able to build 50,000 PT Cruisers annually, on top of the 180,000 annual capacity of the plant in Toluca, Mexico.
The company had anticipated that 30,000 of that 180,000 production would be exported to Europe, South America and Asia, with much of that slated for Europe. But strong interest and early orders for the vehicle prompted the company to move up plans for European production.
"The PT Cruiser will take the Chrysler brand to the next level in Europe, where it is already sold out for the first-year allocation," Jim Holden, president of DaimlerChrysler Corp., said. "In addition, this incremental gain in production volume will allow more PT Cruisers to be sold in the North American market."
The Toluca plant has built about 7,000 PT Cruisers so far, and they are due in dealer showrooms by the end of this month. Production in 2000 is expected to be about 120,000 vehicles.
John Casesa, auto analyst for Merrill Lynch & Co., said that while he believes the car definitely will be the hot model in the U.S. market this year, he's not as sure about its appeal in Europe.
"It's probably the right size for Europe, but I don't know about the styling," he said. "I think there's a market, but it's probably not going to be as mainstream there as it is here."
But he says it is already clear that the PT Cruiser is going to be a hit and inspire other hybrids between the traditional models.
"There's nothing else like it out there and every automaker is scrambling to match it," he said. "I think they're first in a very hot part of the market." 
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