Chrysler to close California design studio

DETROIT (Reuters) - Chrysler LLC on Friday said it would close a California studio that has helped design some of the automaker's biggest recent hits, including the Chrysler 300 sedan and the revived Dodge Challenger.

Chrysler, which became the first of the Detroit-based automakers to move a design studio to California in the early 1980s, on Friday said it would close its Pacifica Advance Product Design Center outside San Diego.

Now owned by private equity firm Cerberus Capital Management CBS.UL, Chrysler said it would consolidate its next-generation design work with its existing studios at its headquarters in Auburn Hills, Michigan.

Chrysler spokesman David Barnas said the move was consistent with the automaker's strategy of controlling costs and consolidating operations where it can.

"These changes set the stage for Chrysler's future global growth efforts," Barnas said in a statement.

It was not immediately clear how many employees would be affected by the closure of the Carlsbad, California-studio.

Chrysler's design operations, including its design of future vehicles, will remain under senior designer Trevor Creed in Auburn Hills, the company said.

Chrysler's crossover wagon drew its name from the Pacifica design studio. Chrysler said late last year that it was scrapping the model in a bid to cut costs and reduce areas of overlap in its vehicle lineup.

A number of major automakers maintain design studios in California for its proximity to a trend-setting market that ranks as the single largest in the United States.

In addition to its economic importance, California has also been the launchpad for auto-related trends ranging from some of the first drive-through restaurants to the more recent boom in hybrids. The state is also a hub for auto customizers.

Ford Motor Co (F.N), Daimler AG (DAIGn.DE), Toyota Motor Corp (7203.T), Honda Motor Co (7267.T) and Hyundai Motor Co (005380.KS) all have studios in California.

(Reporting by Kevin Krolicki; Editing by Gary Hill)