From Deseret News archives:
Chrysler gives 13,000 the Valentine boot
Restructuring blamed on shift to more fuel-efficient vehicles
On Wednesday, Chrysler announced its long-awaited restructuring, which included a 16 percent reduction in its work force, shift reductions, a plant closing and a surprise hint that the plan could lead to a DaimlerChrysler divorce.
The Chrysler plan calls for closing the company's Newark, Del., assembly plant and reducing shifts at plants in Warren, Mich., and St. Louis. A parts distribution center near Cleveland also will be closed, and reductions could occur at other plants that make components for those facilities.
Chrysler blamed the wrenching restructuring on poor sales after a shift in consumer taste from SUVs and trucks to more fuel-efficient vehicles. Workers blamed management.
"It's a shame that Chrysler didn't give us something better. That's not our fault," said Victor Harris, 56, who works in the paint shop at the Newark plant and has been employed there for 35 years.
Aside from the job cuts, Chrysler's German parent, DaimlerChrysler AG, said it is looking at all options to revive its fortunes, including partners for the troubled Chrysler. Its chairman wouldn't rule out a possible sale of the U.S. operation.
The devastation was partially offset by foreign brands expanding their manufacturing operations in the U.S. During that same period, foreign brands, such as Japan's Toyota Motor Corp., and their suppliers have created 30,000 to 40,000 factory jobs in the U.S. That should rise to 50,000 to 60,000 by 2009, McAlinden said.
Chrysler announced its plan at its Auburn Hills headquarters, saying it hoped the move would return its U.S. operations to profitability by next year. Like the other domestic automakers Ford Motor Co. and General Motors Corp. DaimlerChrysler's earnings have been hit hard by rising labor costs and slumping sales as consumers have turned to foreign models. For years, the so-called Big Three pinned their fortunes on higher-priced sport-utility vehicles and trucks, but that strategy soured when gas prices climbed to near $3 a gallon.
Under the Chrysler plan, 11,000 production workers 9,000 in the U.S. and 2,000 in Canada will lose their jobs over the next three years, and 2,000 salaried jobs also will be cut 1,000 this year and 1,000 in 2008.
Comments
- Rep. bashes Dems over health care 9:09 a.m.
- Former China ambassador Lilley dies 9:08 a.m.
- Google concedes on digital book deal 9:00 a.m.
- New Zealand reaches World Cup 8:57 a.m.
- New Milwaukee archdiocese leader 8:56 a.m.
- 3A: Hurricane 24, Park City 19 2:29 a.m.
- GameDay back in the MWC 2:19 a.m.
- Westminster campus briefs 1:49 a.m.
- SUU campus briefs 1:48 a.m.
- Dixie campus briefs 1:47 a.m.
- Williams leaves, won't play tonight
- Unga family is making its mark
- Attack meant to kill apostle
- Trial begins in toddler death
- ESPN suddenly loves MWC
- Man killed during 3rd I-15 crash
- Study: Divorce likely when wife ill
- Short-handed Jazz fly past Sixers
- Can BYU root for (ick) Utah Utes?
- Selfishness to blame for Jazz woes?
- SLC council OKs gay rights policies
348 - Editorial: Mormons and gay rights
199 - Senators want food tax restored
162 - Will state consider gay rights law?
145 - Letters: Strange breed in Utah
129 - Utes remain silent about BCS
120 - S.L. vote pending on gay protections
113 - Celtics crush Jazz
103 - Pratt pleads not guilty to sex charges
102 - Hatch empathizes with Muslims
88
If you are looking for a bird on the cheap, the following specials from...
Maybe someone out there can help me understand how raising the state...
True. It's not terribly funny and if it has any effect on society, it won't...
What else would you expect to find in a book called "The Founders on Religion"?
Ok not to be rude here, but check the stats, Hinds isnt first in yards and...
t-hinds = best player in utah
Anonymous: Was that English? I though conservatives believed if you are in...
Wow! Glad the Lord kept you safe. Separate comment: That was a horrible...
I have never been to a Utah high school game before as I am not from the...
It would behoove the above commenters to recall that religion, including our...
Only 8000 attendance? BYU had 16,000+ tonight. What is wrong with Ute fans?...
ian you are the 3A MVP If you win next week so just do it that would be nice....



You can be the first to comment on this story.