Chrysler to lay off 300 salaried workers this week
Chrysler has been struggling with sales declines more than most automakers during this challenging economic environment, and the some of that pain will transfer to its salaried workforce. The Pentastar is laying off 300 workers today and Friday due to the automaker's inability to reach its goal of 1,000 salary job reductions through retirements. All employees have been ordered to show up for work tomorrow regardless of any vacations or if they are scheduled to work or not. Chrysler CEO Bob Nardelli told dealers yesterday that the Pentastar has lost $400 million so far in 2008, which is likely very bad news for Cerberus investors. There are very few feelings that are worse than losing a bunch of money, but we think going into work tomorrow with a real chance of being handed a box and being told to pack your things would be worse.
[Source: Automotive News subs req'd]
Reader Comments (Page 1 of 2)
TyWright 6:09PM (9/25/2008)
Just getting started folks. I wage Chrysler won't even be around in 18 months.
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Brandon 6:43PM (9/25/2008)
you've got that right.
Who 'Dis? Who 'Dat? 7:04PM (9/25/2008)
Don't be daft, man! Of course Chrysler will be around in 18 months.
(How much are you willing to put down on that wager?)
oZ 9:51PM (9/25/2008)
I'll take that bet. How much are you putting down?
BoneHeadOtto 11:30PM (9/25/2008)
unfair bet since the govt will keep intervening.
jgp 6:22PM (9/25/2008)
Gives new meaning to the term Chrysler 300.
*rimshot*
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Say What? 7:07PM (9/25/2008)
Actually, that was pretty good. *Snicker!*
fizzandpop 7:26PM (9/25/2008)
You're welcome:
http://www.instantrimshot.com/
Tom 6:47PM (9/25/2008)
I'm curious how much of the $400 million loss is cash out the door verses accounting tricks?
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Flashpoint 6:44PM (9/25/2008)
When banking institutions go under, you can bet that automakers this small aren't safe. THEY NEED A BAILOUT.
But Chrysler is so stupid. They knew sales were declining on their car line because of gas prices lame and interior quality.
rather than concentrate on updating interiors, what did they do...they let the gas guzzling Challenger hit the markets and they did a 5 minute touchup to the 300. Now they've got NOTHING on the drawing boards and their so deep in the red its ridiculous.
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Logan 8:46PM (9/25/2008)
Interior quality has little to do with it. Have you ever owned a Chrysler? The entire thing sucks, the interior is just the bad part you're forced to look at. Nothing like having your instruments go dark on the highway at night. Especially when the dealership tells you (paraphrasing here) "It appears your car is..well..we...we don't know really. Oops?"
The bad part is my car is a 98, you'd think by now they would've gotten the clue.
oZ 9:52PM (9/25/2008)
Ah, Logan, I love the smell of anecdata in the evening.
tankd0g 7:23PM (9/25/2008)
But, but, all those hybrids! It was my understanding that vaporware saves companies!
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Xcountryflyer 7:47PM (9/25/2008)
Chrysler will certainly be the heavily favored member of the Big 3 to go under. Whatever turnaround their management has in store isn't happening fast enough and in a really bad economic spot. Chrysler cars mostly suck compared to the competition.
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Gary 11:26PM (9/25/2008)
I'm sure that if potential buyers weren't bombarded with "expert" reviews saying that a certain car sucks, people wouldn't be as hesistant to buy a "sucky" car. People would be able to make their own decision on what's important in a car.
Are hard plastics THAT bad? Do people drive with one hand on the wheel, while another caresses the dashboard and center console?
UH2L 7:59PM (9/25/2008)
This just proves that running an auto company is not as easy as other financial and high tech experts make it out to be. Many from other industries talk like fixing an auto company is easy. Well, it's not. Unlike software, vehicles are made of metal that takes long lead times and heavy investment. They have to be stylish and be safe and comfortable, etc... High gas prices and other environmental factors are the wildcards that make life even more difficult.
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the vegas style guy 1:17AM (9/26/2008)
money guys have only one point, short term profits. car companies must have long term goals in order to invest in themselves and prosper in the long term. since reagan our american industries have been run into the ground by the pursuit of short term profits and ceo bonuses.
it's really that simple.
Cardude 8:15PM (9/25/2008)
All of this talk about "gas guzzlers this, gas guzzlers that, blah, blah, blah" being the reason for Chrylser being in trouble, er Chrylser does make small cars in case nobody noticed, but the problem is people do not want them. Small cars are a dead end for the Detroit 3. They should downsize, and concentrate on making the most fuel efficent big vehicles they know how.
I hope Chrysler survives. They make excellent big vehicles.
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Bruce 9:31PM (9/25/2008)
If they made excellent vehicles of any type they'd be hiring people and not letting them go. They'd also have their hands in their pockets instead of out grabbing at the billions of dollars the US government pulls out it's ass.
The toilet is full and it stinks. It's time to flush the American car industry toilet.
oZ 9:54PM (9/25/2008)
Really? GM has a whole set of small, really great cars. Look at the Astra, or the mid sized Aura, the midsized Malibu. People are even buying them, but not much.
Turns out, the name has to do with it too. They could make perfect cars, and the public still would take a few years to bother looking.