  Passion Member Username: Passion Post Number: 4 Registered: 09-2007 |
DETROIT, Nov. 1 — Chrysler LLC said today that it would cut up to 10,000 more hourly jobs, eliminate 1,000 salaried positions, and discontinue shifts at five assembly plants in the United States and Canada, in the first major steps under its new private owners. The company also is dropping four models from its lineup, including the convertible version of its PT Cruiser sport wagon, as well as the Chrysler Pacifica, a crossover vehicle criticized as being too big and too expensive for family buyers. Also leaving the lineup are the Dodge Magnum, a low-slung station wagon, and the Chrysler Crossfire two-seater. Both those vehicles are based on underpinnings from Mercedes-Benz, which is owned by Chrysler’s former parent, Daimler AG. The job cuts, which will take effect through 2008, are in addition to a plan announced in February that would eliminate 13,000 North American positions. The cuts, though expected, are deeper than industry analysts anticipated. The actions were announced less than a week after Chrysler workers narrowly approved a new contract with the automaker, which was reached following a six-hour strike. Robert L. Nardelli, who was named Chrysler’s chief executive in August, when the company was sold to Cerberus Capital Management, said today that the cuts were needed because of shifts in buyer demand since the original plan was announced. “The market situation has changed dramatically,” he said. In February, industry sales were running at an annual rate of 17.2 million vehicles. But Mr. Nardelli said sales had softened since then and the company expected the slower pace to continue into 2008. Many analysts and the auto companies expect industry sales to be in a range of 16 million vehicles this year and next. “We have to move now to adjust the way our company looks and acts to reflect a smaller market,” added Thomas W. LaSorda, the automaker’s co-president. “That means a cost base that is right-sized and an appropriate level of plant utilization.” Chrysler said the cuts at its factories would affect 8,500 to 10,000 workers. It said it would eliminate third shifts at plants in Belvidere, Ill., Toledo, Ohio, and Brampton, Ontario. It also is eliminating the second shift of workers at the Jefferson North plant in Detroit and its plant in Sterling Heights, Mich. The company also said it would reduce a shift at its Mack Avenue engine plant in Detroit, which has been working on three shifts. As part of the announcement, Chrysler reiterated plans to add two new models to its lineup, the Dodge Journey, a crossover vehicle, and the Dodge Challenger sports car. It also said it would build hybrid-electric versions of the Chrysler Aspen and Dodge Durango, two sport utility models. “These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products,” added James Press, Chrysler’s other co-president. “Further, these product actions are all in response to dealer requests.” http://www.nytimes.com/2007/11 /01/business/01cnd-chysler.htm l?ref=business |
