Chrysler today issued the following news release:
Chrysler Announces New Plans to Balance Supply and Demand

• Chrysler Announces Product and Plant Changes
• Industry-wide volume reduction and sales slow down requires plant adjustments
• Four products will be cancelled from Chrysler line-up; while adding two all-new products and two hybrid models 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."

 

What do you think they mean by " the company ....... will eliminate four models through 2008, including Dodge Magnum .............. and Chrysler Crossfire.
What does "through 2008" indicate? And what about support of current owners and their warrantees?


Jerry Lasker

 

I heard more Crossfires were coming in and would be sold as new 07's.

 

The dealer that I just purchased my 2006 base coupe, just received a batch of about 19 2007s in their inventory.

Its Hillview Chrysler (Greensburg PA) and their inventory listing shows their actual "hot deal pricing". Remember these all get the lifetime powertrain warranty as long as Chrysler is willing to honor it.

- 2007 Base Coupe - $19,495 - 1 in stock
- 2007 Base Conv. 6-Speed - Black - $23,995 - 3 in stock
- 2007 Base Conv. auto - Red - $25,395 - 2 in stock
- 2007 Limited Coupes 6-speed - $23,995
- 2007 Limited Coupes auto - $24,995
- 2007 Limited Conv 6-speed - $27,995

It would be hard to beat these deals on NEW crossfires

 

Crossfires are made in Germany by Karmann, so it just means Chrysler's struck a deal with them. Plant and employee changes at Karmann aren't Chrysler's direct call.

 

Hate to say it, but I'm kinda glad. A limited amount of production years is good for a model. These are very specialized models from the whole Daimler/Chrysler merger. It does suck when people lose their jobs, though. Get 'em while you can!

 

Good point. I makes me wonder why the answer to the question of who manufactures the Crossfire (when one registers for this forum) is "Chrysler". I answered "Karmann" first & it wouldn't let me continue until I answered "Chrysler".

 

aw, forget it.

 

Unfortunately Nardelli will cut cut and cut some more until he gets to a level of profitablity that will provide HIM with the biggest payday. He does not care abount anyone but Nardelli. He is from the neutron jack days and will get rid of anyone he needs to. I was hoping Chrysler would take a Mazda stance, build unique niche cars that fill a need and make the company profitable by producing cars in a quantity that will they can sustaing and support. Oh well.....

 

The car is still manufactured by Chrysler, marketed by Chrysler, and carries the Chrysler namebrand. The SRT engineers still had a lot to do with the car. If you bought a Volkswagen, would you say it was manufactured by Audi?

I do agree that it's good that they stop making them -- especially the limited run of SRT-6's!

 

I'm with you Rampant.

Spent two months on that question. Given that the founders of the club wanted only actual "owners'" to join, I thought it was a secret handshake kind of thing. the average street guy would have guessed "Chrysler" right away.
What made it really frustating was that if you wanted to contact the forum and let them know you were having trouble with registration, you had to answer the same stupid question!

Crossfires are built by Karmann, in Germany, from Diamler and Benz parts. The only thing in the car from Chrysler is the stickers and the emblems and they are installed by Karmann, IN GERMANY!




roadster with a stick

 

From what I understand, it was a five year contract signed with D/C. Since that entity doesn't exist anymore, I'm not surprised. We got a run of great cars. I just look at it as half-full. As long as whatever entity owns Chrysler honors all warranties, then I'm happy.

Karmann is a great company. Just look at all of the fabulous cars they built.

http://en.wikipedia.org/wiki/Karmann

 

just to put some of you at rest... while chrysler could in fact choose to not honor the lifetime powertrain warranties on their discountinued cars (xfire, magnum, etc) this would be in poor interest for chrysler for multiple reasons. first off, the amount of owner loyalty when purchasing another vehicle would decline significantly because people would not be sure if they could trust chrysler to honor any future warranties, thus causing a loss of revenue and profit... not what chrysler wants. second, and more important, would be the HUGE class-action lawsuit that would be filed on behalf of all affected chrysler owners. when you purchase your car, you are in fact purchasing the warranty, as many if not all of you know it is a contract. wherein, if you follow the guidelines of the contract, i.e. regular maintenance on the crossfire, then chrysler under legal penalty cannot negate the contract they made with you, i.e. the lifetime warranty. while many people may be thinking, well that is a huge hassle for me to file a lawsuit, think from the other side. once ONE person files that class-action it is a small form and a signature away from everyone else joining. and you have to think that it is easier for chrysler to honor the lifetime warranty than it is to settle, some 20,000ish lawsuits (assuming all affected crossfire/magnum/etc. owners participate in lawsuit) with millions of dollars at risk, rather than simple ineterest insurance premiums.


just my educated $.02

Matt

 

Chrysler Has Always Honored There Warranties Just Because The Car Is Discontinued Doesnt Mean The Warranty Is I Work For A Chrysler Dealer In The Parts Dept. And Have A Srt-6 With 12,000 Miles With 20 Months Left On The Bumper To Bumper Not Worried About A Thing You Guys Should'nt Either........ Alot Of Chrysler Dodge And Jeep Products Use Benz Parts Not Just The Crossfire.......

 

I think its a good thing too, makes our srt6's even more coveted IMO.

 

Be that as it may, Chrysler is now LLC. No one knows the future of this venerable institution. Let's just hope there's a viable company selling cars 5-10 years down the Detroit, pot-hole plagued road.