It's Starting...


http://money.cnn.com/2007/11/01/news...ex.htm?cnn=yes

 

Looks ugly.....

Wall Street Journal --

Chrysler Plans to Cut
Thousands More Jobs

By KEVIN KINGSBURY
November 1, 2007 10:41 a.m.

Chrysler announced plans to cut more than 10,000 additional jobs and cut vehicles from its lineup as the auto maker unveils its future battle plan three months since being taken private.
The company, in which Cerberus Capital Management LP acquired an 80% stake from Daimler AG in August, plans to eliminate shifts at five North American plants. Combined with other manufacturing moves, some 8,500 to 10,000 hourly jobs will be cut through 2008. (Statement)
In addition, 1,000 salaried employees will be laid off and 37% of so-called supplemental employment will be cut. Overtime for all employees is slated for elimination.
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The job cuts are in addition to the 13,000 layoffs announced in February -- 11,000 production jobs and 2,000 salaried jobs.
Chairman and Chief Executive Bob Nardelli said, "The market situation has changed dramatically" since the February plan was released, noting slumping U.S. car sales throughout the year, a trend he said it expected to continue into 2008.
The moves are the latest example of Chrysler's aggressive push to restore profitability and improve competitiveness versus Asian manufacturers with leaner cost structures. The U.S.-based auto makers have slashed tens of thousands of jobs the past several years, primarily through buyouts and early retirement, in the face of slowing sales.
Chrysler employees who belong to the United Auto Workers agreed to a new contract in recent days that calls for a two-tier wage system that will allow Chrysler to give new hires in certain jobs reduced wages and benefits. The auto maker also pledged to keep work in almost all of its unionized facilities for at least the four-year term of the contract.
"We have to move now to adjust the way our company looks and acts to reflect a smaller market," said Chrysler President Tom LaSorda on Thursday. "That means a cost base that is right-sized and an appropriate level of plant utilization."
The vehicles to be eliminated through 2008 is the Dodge Magnum, the convertible version of the Chrysler PT cruiser, the Chrysler Pacifica and Chrysler Crossfire. Two new vehicles will be launched in the next 14 months, as well as hybrid versions of the Chrysler Aspen and Dodge Durango

 

As painful as this is to many, maybe this will put Chrysler on a path to profitability and continued auto lines. We can only hope.

 

According to the story in today's New York Times:

"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."

So the divorce was not amicable, which isn't much of a surprise. Let's hope the parts do not dry up. And I doubt Chrysler's service will improve, either. As an owner of both a Crossfire and a Magnum, I am not thrilled with this development.

 

Even here in " job loss central", Indiana, I have a very hard time understanding 12,000 lost jobs. 12,000 families, 12,000 homes, 12,000 everything. Where are we headed? This, and all the other losses, are a sad day for this country.

 

I have worked at the belvidere assembly plant for the last 20 years.We have been hearing rumors of third shift going away for some time now so it was no big suprise but the number of layoffs corporate wide caught everyone off guard.Thats all everybody was talking about today and im sure this is just the start.By the time this is over we will be a much smaller company thats for sure.Everyone is holding on for dear life cause at the plant level nobody has a clue what is going to happen next.My only relief is that i work in the trades so i have something to fall back on if needed.I feel sorry for alot of the families who transfered into our plant after theirs was shut down cause alot of them will be without a job again only this time they are a long way from their origional home and friends.