US car-maker lays off 13,000 workers
14 February 2007

Thousands of DaimlerChrysler employees in North America and Canada are facing the prospect of a less-than-romantic Valentine's Day, as the firm has made 13,000 people redundant.

American union spokesmen have christened it the 'Valentine's Day Massacre'. However, US motor industry critics suggest that the lay-offs are a crucial part of Chrysler's plan for continued profitability.

In 2006 Chrysler made a $162million (£83million) loss, and its US sales fell by seven per cent.

Chrysler employs 83,000 people in North America. Of those, 9000 in the US and 4000 in Cananda will lose their jobs over the next two years. The entire factory at Newark, Delaware, with a staff of 2100, is to close.

The job cuts are part of a strategy called 'Project X', which is intended to counter the negative effects of the rising price of petrol in the US, and the prohibitive employee pensions and healthcare overheads that threaten to overwhelm not just Chrysler but America's other major car companies, General Motors and Ford.

DaimlerChrylser chief Dieter Zetsche is also said to be considering selling Chrysler. Read that story here.

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