Chrysler runs lean
Reacting to a changing market, Chrysler will reduce shifts and retire some modelsIn a declining US market, Chrysler is restructuring its business to improve profitability and reduce cost.
The first stage of the plan to lead Chrysler to improved profitability came in February with the Recovery and Transformation Plan -- six months before the split from DaimlerChrysler and acquisition by Cerberus Capital Management.
In the latest announcement, Chrysler will shed between 8500 and 10,000 jobs with what Tom LaSorda, Chrysler Vice Chairman and President describes as "appropriate level of plant utilization."
That means ending third shifts at three plants and reducing overtime, among other measures. Chrysler's management has just concluded negotiations with the UAW (United Auto Workers) -- the union which protects the interests of workers at Chrysler's plants and plants operated by the other two members of 'The Big Three'.
The company will also cancel four product lines: Dodge Magnum, PT Cruiser convertible, Pacifica crossover and the Crossfire. Magnum is a large 300C/Charger-based wagon, which has seen sales in decline. Its cessation leaves the way open for the Holden-built Pontiac G8 to fill the gap, if Pontiac take the G8 in Commodore-based wagon form.
Chrysler will add two new models, the Dodge Journey and the Dodge Challenger. The Challenger is expected to be a popular seller, based on the reaction to its seventies muscle car styling.
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