Report: Chrysler to Cut 7,000 Jobs, Axe 4 Models
01 November 2007
Detroit Free Press. The Chrysler board reportedly has approved a plan to cut at least 4,900 hourly workers and about 2,100 salaried and contract jobs as part of a wide-ranging cut in production across its factories. The restructuring plan also calls for eliminating four slow-selling models from the lineup: the Chrysler Pacifica, Crossfire, PT Cruiser convertible and the Dodge Magnum.
The cuts come in addition to Chrysler’s February plan to eliminate 13,000 jobs over three years, including 2,000 salaried jobs. The new cuts, first reported by the Free Press earlier this month, include an additional 1,000 salaried workers, or a 5% reduction, and about 1,100 contract workers.
While the privately held Chrysler is not required to make its financial results public, it had lost $2 billion in the first three months of this year and saw its sales decline 3% through September. Several of its newer products, such as the Jeep Commander built at Jefferson North and the Chrysler Sebring at Sterling Heights, have not met expectations.
Chrysler does not have many other choices. This may be just the tip of the iceberg.
Like GM and Ford, Chrysler may have to progressively move, most of its production, to countries with lower production cost. Reducing hard to sell gas guzzlers production is another must.
It's a question of economical survival.
Posted by: Harvey D | 01 November 2007 at 08:36 AM