Chrysler announced today (1 November 2007) that they would cut between 8,500 and 10,000 hourly-paid jobs in 2008.Salaried staff would also be cut by 1000 and contract employment by 37 per cent. Four models will also end production in 2008. Victims of the cost cutting are the US-only Dodge Magnum and Chrysler Pacifica, as well as the Chrysler PT Cruiser convertible and Chrysler Crossfire, both of which are sold in America and Europe.This news comes only eight months after Chrysler announced 13,000 job cuts in an attempt to reduce the company's debt - weeks before it was taken over by Cerberus financial group.Reasons for this latest wave of cuts are put down to an unexpected downturn in the market.Tom LaSorda, Vice-Chairman and President of Chrysler, stated that "we have to move now to adjust the way our company looks and acts to reflect a smaller market."It is also claimed that the product cuts are a result of dealer requests, and the need to "focus resources on new, more profitable and appealing products."Chrysler has just completed a contract with the worker's union, United Auto Workers, to spend more than £7.5billion on products, plants and engineering before 2011.
Join the debate
Add your comment
Re: Chrysler cuts jobs and product
My question is, will the 300 Estate (the Magnum is the same besides different front clip and interior bits) be cancelled as well? The 300 Estate is built in Graz, Austria by Magna but will the cancellation of the Magnum have an effect on it? The last industrial news I was aware of was the production of the 300 Estate was being moved to Canada. And apparently the Dodge Journey is supposed to fill the gap between the Dodge Magnum and short wheelbase Chrysler Voyager. So what next Chrysler? Indeed a very poor move by Chrysler, the Cherokee (aka Liberty) and Nitro overlap. The Chrysler Aspen was the answer to the question nobody asked (rebadged Dodge Durango). The Jeep Compass is a joke and overlaps with the Dodge Caliber. The Crossfire isn't worth selling due to poor sales. The Jeep Commander cannibalizes sales of the Grand Cherokee. The Pacifica is a nice vehicle but I can understand it's cancellation due to it being on the previous generation Voyager's platform. So Chrysler is dedicating the extra capacity at the Canadian plant for the Challenger.....that's all well and good but I don't think the Challenger will be the "cash cow" that Chrysler LLC is expecting. Petrol prices in the states have risen considerably and most Americans will eventually begin to downsize. Chrysler would have done well be eliminating overlap of said vehicles, improving their interiors of their cars to make them competetive, do a mild facelift of the Sebring (eliminating the creases would be a start), and selling more diesel powered cars in the United States. VW is the only company to offer diesel powered cars in the United States. Okay, I'm done ranting, I just smell doom for Chrysler LLC.