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.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK