Chrysler to eliminate 12,000 jobs
The automaker is planning to cut one shift each at several plants in the Midwest.
Chrysler LLC said Thursday it plans to cut up to 12,000 jobs, or up to 15 percent of its work force, as part of an effort to slash costs and match slowing demand for some vehicles.
The automaker will cut 8,500 to 10,000 hourly jobs through 2008 and salaried employment by about 2,100. It will eliminate shifts at five North American assembly plants and eliminate four products from its line-up.
As part of the new plan, shifts will be cut in Belvidere, Ill., Toledo, Ohio; Brampton, Ontario; Jefferson North in Detroit and a plant in Sterling Heights. Also, a shift will be cut at the company’s Mack Avenue engine plant.
On Wednesday, congressional aides confirmed that Chrysler would eliminate 750 jobs at the Toledo plant, which makes the Jeep Liberty and Dodge Nitro, and 1,000 jobs at the Belvidere plant, where Chrysler assembles the Dodge Caliber, Jeep Compass and Jeep Patriot. The aides spoke on condition of anonymity because they were not authorized to speak publicly.
Chrysler restructures, thousands of jobs cut
The cuts come on top of thousands of salaried job cuts that began Wednesday. Chrysler spokesman Mike Aberlich said about one-third of the company’s temporary workers will be laid off in the next few months along with other salaried workers. Aberlich didn’t disclose the number of workers that will be affected.
But on Wednesday, a person briefed on the plan, who also requested anonymity because the plan has not yet been announced, said that 1,000 salaried workers and 1,100 temporary workers - who work in engineering, finance, procurement and other areas - will be laid off.
The layoffs of temporary workers began Wednesday and will be completed by December. Salaried workers will be eligible for early retirement and separation packages beginning next month, the person said.
The cuts come in addition to the 13,000 layoffs Chrysler announced in February as part of a massive restructuring plan. Those cuts included 11,000 production jobs and 2,000 salaried jobs. The new round of cuts was expected to involve buyouts or early retirement packages similar to those made in February.
Chrysler CEO praises ‘revolutionary’ deal
The announcement comes just days after the United Auto Workers union ratified a four-year deal with the automaker. Chrysler became a private company in August when Germany’s Daimler AG (Charts) sold 80.1 percent of Chrysler to the private equity firm Cerberus Capital Management LP. Chrysler’s new chief executive Bob Nardelli has said the automaker is focused on raising cash for its turnaround.
Nardelli and Chrysler Vice Chairman Tom LaSorda didn’t elaborate on the layoffs Wednesday during a trip to Washington to meet with lawmakers and the Bush administration on energy legislation, including upgrades to fuel economy regulations.
Nardelli said the final decision on the cuts came Tuesday during Chrysler’s first board meeting as a private company. “Those are within the confines of the board and the board’s decisions,” he said of the layoffs
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