Filed under: Hirings/Firings/Layoffs, Chrysler, LLC., Dodge, Jeep
Chrysler cutting 1,000 white collar workers
Chrysler is losing money by the truck-load, and its vehicles aren't selling, so common sense dictates that team Pentastar was going to start making cuts soon. That time is now, when Chrysler notified workers that it would be cutting 1,000 white collar workers. Chrysler spokesman David Elshoff told employees that the company would achieve its cut target through retirements, attrition, and buyouts, which means people won't be handed boxes and receive security escorts just yet. Chrysler management is making the cuts with the belief that the current economic situation here in the States isn't going to improve any time soon. A quick look at the Pentastar's car lineup shows the privately owned company would be in trouble even if the economy had a rosy outlook. No timetable was given for the white collar cutback.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
the vegas style guy 6:37PM (7/23/2008)
"Chrysler management is making the cuts with the belief that the current economic situation here in the States isn't going to improve any time soon"
Ya think?
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Flashpoint 6:53PM (7/23/2008)
Chrysler's vehicles aren't selling because they aren't producing intelligent cars anymore.
The only car they have that meets family demands, isn't very expensive, has a good interior/exterior design and gets good gas mileage for its size is the Pacifica and the town&country minivan.
The Chrysler 300/Charger is a great car for big families but the only trim with good fuel efficiency are the 2.7 and the 3.5 which are a bit expensive when you compare them to the Japanese models in that range such as the Accord and the Camry. It also doesn't help that the 300's interior is outdated.
The Pacifica is nice but its too expensive as a crossover SUV now that the FORD EDGE and a host of Japanese crossovers are on the market. Which is sad since the Pacifica practicaly INVENTED that segment.
The Crossfire, and PT Cruiser aren't large enough to interest anyone with serious day-to-day driving needs.
The Sebring gets pitiful reviews -which some people count on to make informed buying decisions.
Then we get into Chrysler's badge engineering problems where all their vehicles are basically slightly higher end Dodge products.
The Chrysler 300 and Pacifica are dead now. The designs aren't new anymore so people don't crave em.
I see those cars everywhere now.
WHAT CHRYSLER NEEDS IS TO TACKLE FUEL EFFICIENCY while putting out engines that offer the power of a 3.5 or a 5.7 Hemi.
They need to tackle interior design issues.
Ford and GM have already beat Chrysler to it while they both trail behind the Japanese who trail behind the Germans in design and quality. Chrysler needs to put out new cars that offer exclusively to the American public.
And if they can't handle that, they need to be acquried by Ford or GM.
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geo.stewart 7:03PM (7/23/2008)
do you even know what you are typing?
From your notes, you dont seem to realize that Dodge and Chrysler are the same company, not just the same cars. cutting 1000 from Chrysler is the same as Dodge. you completely discount the entire Dodge lineup (not that everyone else doesnt also LOL but they also disregard Chrysler product) so you dont mention the Journey (which actually isnt terrible, if late to the party) or the nauseating Caliber or the RAM (all 3 of which do not have Chrysler counterparts so should be mentioned.
Ford or GM need to buy Chrysler? yeah, when pigs fly. the overlap is ridiculous and both Ford and GM produce better product so why would they want to?
Toledo Guy 10:22PM (7/23/2008)
Um, you do know that the Pacifica was discontinued early this year, don't you?
mr.ed 8:05PM (7/23/2008)
That will probably include my son, who designs Jeeps. He's not protected by a union, either. Good thing his inlaws are wealthy.
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Dave 9:01PM (7/23/2008)
As a long time Chrysler owner and supporteer, I just want to know one thing.
Where do we send the flowers and is there a guest book to sign?
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John B 5:08AM (7/24/2008)
And now the end is near.
And so I face the final curtain........
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tanooki2003 9:45AM (7/24/2008)
As much as it does not pain me to say but.....Well let me ask the readers.
How many of you autoblog readers saw this coming many miles away?
I honestly don't think that even Nissan can save this company, or it's reputation unless Chrysler themselves starts by hiring talented engineers and designers who can turn the company around. Currently it seems that none of the workers in the design department are capable of breaking out of the 60's, 70's, 80's and maybe early 90's.
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John B 9:54AM (7/24/2008)
Predictable doesn't even start to cover it, the demise of at least one of the so called 'big 3' has been on the cards for years. All 3 of them have been struggling along just about keeping their heads above water. It has taken the recent downturn to shake them all to the core.
Call it a global economy, call it years of short sighted management and misplaced product planning. The only thing you can't call it is a surprise.
Sadly the only real issue here is which one will fold first.
SRT 4:32PM (7/24/2008)
I agree, I work for Chrysler in the IT dept and I can tell you the engineers here dont like or want change. I was installing a new Canon plotter for the engineers and had to give them a little course in its operation, there were about 50 of them in the room and they were mad I was upgrading their 10 year old plotter, even though the new one was 10x faster and the resolution was twice what the old one was and one engineer stood up and said " we dont want a new plotter, we dont like change here". Right then and there I realized my company was doomed. Needeless to say I am looking for a new job.
Martman 10:28AM (7/24/2008)
Truley the only thing Chrysler has of any value to any other automaker is the Cummins engine, which is not even theirs, and the Hemi engine. Which, in a world of mulivalve overhead cam engines,and high gas prices, is outdated, and obsolete.
I own a dodge mini van it has been very reliable, but I will problably not buy another Chrysler product.
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bill jackman 12:37PM (7/24/2008)
Chrysler can thank the minivan for its survival in the 80s and trucks in the 90s. Crossovers seem to be the ticket in this decade, and though the PT Cruiser helped a lot, they were just too late to the party to leverage that into broader success. I love the Challenger, Charger and 300, but one platform can't drive a company.
Everyone's been saying Cerebus will make a go at profitability for at least a little while. This job cut is proof that they're still after that at all costs. However, they're probably thinking the best option immediately following this is to sell off the divisions. Jeep will bring a tidy little sum (the brand alone is worth huge dollars), as will Dodge (just because it has a working lineup) ... but going forward the Chrysler nameplate would probably only survive as a small lux brand. However, it's fallen so far from the tree that it wouldn't be worth much now in its current state.
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Xcountryflyer 2:06PM (7/24/2008)
Bankruptcy
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johneboy 1:24AM (7/25/2008)
Chrysler will survive in some shape or form. So all you comedians might as well line up at your local comedy club amateur night. There is a long history of excellent design and engineering at Chrysler. They own the Jeep brand. There are Chrysler plants that have been making money for the company for decades regardless of company wide profits. Somebody will buy from Cerberus when they decide to sell. It is too bad that Daimler left Chrysler nose-high in shize. Pardon the spelling.
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CBESSEMER 1:04PM (7/25/2008)
Wow, you people know nothing at all. First off, Chrysler is not going under, they are losing a fraction of what GM and Ford are. And to the idiot who bashed the Caliber, it's one of the hottest selling cars for Chrysler right now. I'm starting to get sick of Autoblog's biased opinions towards Chrysler. Cerberus is saving the company that Daimler ruined, yet no one seems to want that? Are all of you planning to move to Europe soon?
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