Chrysler to close Dodge Ram plant ahead of schedule

DETROIT (Reuters) - Chrysler Group LLC said on Wednesday it would close its Missouri truck plant in early July, weeks ahead of schedule in one of the first moves by the automaker's new management under Fiat SpA (FIA.MI).

Chrysler, which emerged from bankruptcy this month by selling most of its assets to a group led by Italy's Fiat, said its St. Louis North Assembly Plant that builds the Dodge Ram pickup truck would be idled effective July 10.

The automaker had earlier planned to shut it down late in the third quarter.

The Missouri plant is one of the six plants Chrysler has identified for closure between the third quarter of this year and the end of 2010 as part of a restructuring of the No. 3 U.S. automaker.

A Chrysler spokeswoman said the plant employed about 800 workers, updating an earlier figure of 1,200 that the company gave before it took into account retirements and buyouts of unionized workers since late last year.

Chrysler also plans to close five other plants in Michigan, Ohio and Wisconsin.

The earlier closing comes as major automakers scramble to cut back on a bloated inventory of unsold cars and trucks in the face of a severe slump in sales.

U.S. auto sales have fallen to their lowest levels in nearly three decades this year, forcing Chrysler and General Motors Corp GMGMQ.PK to restructure under federal court protection.

Chrysler's inventory of Dodge Ram trucks totaled 115 days of supply as of June 1, according to data compiled by industry trade journal Automotive News. The industry average was 67 days of supply as of June 1.

Chrysler said it would offer buyout and early retirement programs to workers represented by the United Auto Workers union at the plant, as well as the opportunity to transfer to other Chrysler facilities.

(Reporting by Soyoung Kim; Editing by Tim Dobbyn)