Chrysler to cut 12000 more jobs in massive restructuring

[Mantour]

The Canadian Press (http://canadianpress.google.com/article/ALeqM5jOeyYI0XAnBccATsW9WXqpeZLidw).


That makes a total of 25000, counting the 13000 jobs cut announcement earlier this year. Dr. Z sounds more like the Dr. Giggles of the Domestic auto industry..

[WolfpackBill]

You've got to remember Dr. Z doesn't run the company anymore. The company was sold to Ceberus earlier this year as a privately owned company. Whether it floats or sinks depends on when they sink because we won't be able to find any financial info because it's not public anymore.

On top of that, they killed quite a few models. The one I'm sad to see them let go is the Magnum. I love that thing!!

[flippco]

You've got to remember Dr. Z doesn't run the company anymore. The company was sold to Ceberus earlier this year as a privately owned company. Whether it floats or sinks depends on when they sink because we won't be able to find any financial info because it's not public anymore.

On top of that, they killed quite a few models. The one I'm sad to see them let go is the Magnum. I love that thing!!

DaimlerChrysler still holds a 20% share in the company, still that is a lot of lost jobs. When I first graduated college in 1999 I wanted to work for them, then they laid of 25,000 people.

I agree with the Magnum, that thing is bad a$$. I always thought sales were decent, but I bet they've slowed considerably.

[Mantour]

Now that GM and Chrysler signed their agreement with UAW, it is now Ford's turn. at the table. Ford lost 12 Billions last year and may even be in worse situation than Chrysler or GM. I predict Ford will even slash more than Chrysler and GM.

[stevencrosbie]

I think lots of good will come from this. I will bet you the next round of Chrysler vehicles might be nice....I hope so....

[flippco]

I think lots of good will come from this. I will bet you the next round of Chrysler vehicles might be nice....I hope so....

As a life-long Chrysler fan (My Dad works for a Dealership). It seems as they ride a roller coaster. They introduce a great vehicle only to ride that wave a little too long and then a lull...until another hit. I hope they can improve their reliability and appeal.

[MotorCity Honda]

*Here's a Thread I started on the subject***
----------------------------------------------------------------

Cerberus is really going to shake things up!!

I know people that work for Chrysler LLC and two weeks ago they were all gathered in a coneference room and shown a video with the Cerberus head honcho's" telling them where they plan to go, how they plan to get there etc, etc. After each part of the video they would pass around a questionare and ask questions like "what can you do to halp us realize this target".. Basically a "justify your job" pow wow...NOT FUN!!

Bradford Wernle
Automotive News
November 1, 2007 - 10:20 am ET



DETROIT -- Chrysler LLC, ending days of speculation, said today it will slash 8,500-10,000 hourly jobs before the end of 2008 and cut four vehicles from its lineup as it restructures under the ownership of Cerberus Capital Management LP.

Another 1,000 salaried jobs also are being cut along with about 37 percent of its contractors, the company said. Chrysler will also eliminate hourly and salaried overtime.

Chrysler will drop shifts at Belvidere (Ill.) Assembly, Jefferson North in Detroit, Toledo North, Brampton (Ont.) Assembly, Sterling Heights (Mich.) and Mack Avenue Engine Plant II in Detroit.

Chrysler will cut the Dodge Magnum, the Chrysler PT Cruiser convertible, the Chrysler Pacifica crossover and the Chrysler Crossfire convertible.

In the same time frame, Chrysler said it will add two all-new products to its portfolio: the Dodge Journey crossover and Dodge Challenger coupe, along with two new hybrid models, the Chrysler Aspen and Dodge Durango SUVs.

“The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," Chrysler CEO Bob Nardelli said in a prepared statement.

Chrysler LLC today announced that it would make volume-related reductions at several of its North American assembly and powertrain plants, and eliminate four products from its line-up.

Shifts will be eliminated at five North American assembly plants which, combined with other volume-related manufacturing actions, will lead to a reduction of 8,500-10,000 additional hourly jobs through 2008.

Additional actions include reductions of salaried employment by 1,000 and supplemental (contract) employment by 37 percent. The Company also plans to eliminate hourly and salaried overtime and reduce purchased services due to reduction in volume.

The volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan (RTP) announced in February. The objectives of the RTP remain the same.

"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," said Bob Nardelli, Chairman and Chief Executive Officer. "Annual industry volume (U.S. market) then was running at a 17.2 million clip. Now, we expect a seasonally adjusted annual volume for 2007 to be significantly lower and carry over into 2008."

"We have to move now to adjust the way our company looks and acts to reflect a smaller market," added Tom LaSorda, Vice Chairman and President. "That means a cost base that is right-sized and an appropriate level of plant utilization."

LaSorda added that third-shift operations at assembly plants usually reflect a high demand after a product is launched. Three of the five plants affected by this action are the result of elimination of third shifts" in Belvidere, Illinois; Toledo, Ohio, and Brampton, Ontario.

In contract negotiations just concluded with the United Auto Workers, Chrysler committed to spending more than $15 billion on products, plants and engineering during the life of the contract through 2011.

The company announced that it will eliminate four models through 2008, including Dodge Magnum, the convertible version (only) of Chrysler PT Cruiser, Chrysler Pacifica and Chrysler Crossfire. In the same time frame, Chrysler will add two all-new products to its portfolio: the Dodge Journey and Dodge Challenger, along with two new hybrid models, the Chrysler Aspen and Dodge Durango.

"These actions reflect our new customer-driven philosophy and allow us to focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman and President. "Further, these product actions are all in response to dealer requests."

Manufacturing Actions

Chrysler will eliminate shifts at five assembly plants, and take further volume-related actions at several other facilities. It will:

Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and Jeep Compass.

Drop second-shift operations at its Jefferson North (Detroit, Mich.) Assembly Plant in the first quarter 2008. It's expected that the plant will return to two shifts in first quarter 2010 with the introduction of the next generation of sport-utility vehicles. The addition of a third shift will remain an option, depending on market demand. Jefferson North builds the Jeep® Grand Cherokee and Jeep Commander.

Drop third-shift operations at the Toledo (Ohio) North Assembly Plant in the first quarter 2008. Toledo North builds the Jeep Liberty and Dodge Nitro.

Drop third-shift operations at Brampton (Ontario) Assembly Plant in first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger and Dodge Challenger. The Dodge Magnum will be discontinued.

Drop second shift operations at Sterling Heights (Mich.) Assembly Plant in first quarter 2008. Sterling Heights builds the Dodge Avenger and Chrysler Sebring sedans and Chrysler Sebring Convertible.

In addition, Mack Avenue (Detroit) Engine Plant II will return to a traditional two-shift / two-crew operation in the first quarter 2008 after operating on a three-crew, two-shift, 120-hour-per-week (3/2/120) schedule. Mack II builds the 3.7-liter V-6 engine.

"I'm confident that we have the right team in place and a business plan that doesn't need to be re-written," concluded Nardelli. "Like all good plans, the RTP has built-in flexibility that allows us to stay one step ahead of market change. And that is the way to long-term sustained profitability."

[flippco]

It was a surprise to hear that Nardelli took over, he really made the shareholders at Home Depot "happy." It is going to be interesting to see what happens.

[MotorCity Honda]

It was a surprise to hear that Nardelli took over, he really made the shareholders at Home Depot "happy." It is going to be interesting to see what happens.


ha.. yeah... Real "happy"

[flippco]

Some people would define Jack Welch as a great leader...well he could have spent more time with Nardelli.