Filed under: Chrysler, LLC., Daimler
Chrysler's "Project X" calls for 10,000 jobs cuts, two closed plants
We have more details on the rumored restructuring plan that the Chrysler Group is expected to announce on February 14th. First, it's dubbed internally as "Project X", which must mean it involves chimpanzees and large doses of radiation. In addition to radiated chimps (we're kidding, click the link for the punchline), Automotive News is reporting that the plan will likely involve cutting 10,000 factory jobs and closing the Newark Assembly Plant that builds the Dodge Durango and Chrysler Aspen, as well as the an engine plant in Detroit that we believe makes the 4.7L V8 motor for Jeep and Dodge. The ultimate goal is reportedly to make the Chrysler Group smaller, more efficient and more closely alligned with Daimler-Chrysler and Mercedes-Benz. The restructuring plan sounds similar to those currently being implemented by General Motors and Ford, though smaller in scale. For its part, Ford learned a valuable lesson not cutting deep enough the first time around, so we're eager to see if the Chrysler Group comes back for a second round of cuts, as well.
[Source: Automotive News]
Reader Comments (Page 1 of 1)
St?ane Dumas 2:14PM (2/05/2007)
I spotted this French article from January 22 at
http://www.leblogauto.com/2007/01/divorce-daimler-chrysler-la-rumeur-gronde.html who annonced "divorce" rumors, I guess they wants to play their last cards before coming out with this option. There some talks about it at http://www.gminsidenews.com/forums/showthread.php?t=44445 and a interesting rant posted by a guy nicknamed Nadepalma at http://www.gminsidenews.com/forums/showpost.php?p=926958&postcount=5 then I decided to quote
"This is the last hurrah -- if it doens't get fixed now, Zetsche will get pressure from the German stockholders and Chrysler will be spun off or sold off or maybe there will be a 50-50 venture with another company (Goshn may get his wish afterall)."
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dan spalinger 2:29PM (2/05/2007)
Just a coincidence the announcement of the plan falls on Valentine's day?? Hmmmmmmm?? I think not!! This is D/C's way of showing a little Valentine's day love to its shareholders!!
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Accordsforall 2:29PM (2/05/2007)
Hmmm
Whats messed up is..
The cost and time if takes to open and close a plant, lay off workers and do all of that.. theyd save it.. if they had flexible manufacturing...
But I feel bad for those.. losing their jobs.
But not to be.. spiteful..
This doesnt make me buy American. What makes me buy American.. is if they are comparable to the Japanese cars, in resale, reliability, design cycle.. etc etc
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Aaron 2:30PM (2/05/2007)
this WILL be their second round of cuts.
I recall Dr. Z left production open a few eyars back for when the merger of equals started bearing fruit which is never did.
These 2 shutdowns make perfect sense by the way.
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naggs 4:17PM (2/05/2007)
its sad to see people loosing their jobs because of poor product decisions made by higher ups. people wont buy crappy outdated cars with crappy outdated engines.
"I recall Dr. Z left production open a few eyars back for when the merger of equals started bearing fruit which is never did."
the 300/magnum has been a huge hit for chrysler and that car would not have been possible without the diamler parts bin
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Matt Keegan 4:40PM (2/05/2007)
This make perfect sense for DCX. It won't be an easy move, but then again what is? Best wishes for Chrysler, Jeep, and Dodge!
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PJ 5:01PM (2/05/2007)
Matthew Broderick? Bugh.
I take it the AutoBloggers have never heard of this project X: http://www.projectxweb.com/
They're funnier.
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Barney 10:01PM (2/05/2007)
They now make more models but sell less cars. It's poor planning to keep coming up with new models to see if they will sell. Maybe Chrysler should just be a NA dealer network for less expensive Mercedes Benz.
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Frank 8:05AM (2/06/2007)
Maybe Daimler should let Chrysler go so it can be indenpendant again. These mergers...I mean takeovers never work. The cultures are too differenct and MB doesn't know it's arse from a hole in the ground when it comes to mass market autos in NA. They just know how to overcharge for way too much electronic crap and way too many quality problems.
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Muhammed 12:09PM (2/06/2007)
I agree with Frank. Chrysler may have borrowed from Daimler's parts bin, but it's the Chrysler designs that have been huge hits, selling in big numbers and generating revenue. Mercedes Benz continues to produce overpriced cars with electronic gremlines and quality control issues. Their reliability has gone significantly downhill, while they continue to lose market share in the luxury car market which they once dominated.
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Phil 1:41PM (2/06/2007)
This will only serve to make people continue to view Chrysler as part of the 'unsuccessful' Detroit 3.
That's the problem with even having your headquarters in that city. You begin to think like a bunch of purely white bread idiots, and to 'DO WHAT GM WOULD DO'. fREAKING IDIOTS!!
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