REPORT: If Chrysler liquidates, 38,500 jobs would be lost

Michael Harley — Fri, 01 May 2009 13:58:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Chrysler, Fiat

A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.

"Time is of the essence," said attorney Corinne Ball. The lawyers, in court seeking to organize the company's 25 affiliates into a one bankruptcy proceeding, stressed in yesterday's so-called first-day pleadings that if Chrysler dissolves, "it will mean the end of an iconic, 83-year-old American car company."

[Source: Bloomberg | Image Source: Bill Pugliano/Getty]

REPORT: If Chrysler liquidates, 38,500 jobs would be lost originally appeared on Autoblog on Fri, 01 May 2009 13:58:00 EST. Please see our terms for use of feeds.

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REPORT: Largest American Axle plant to idle as work shifts to Mexico

Michael Harley — Wed, 29 Apr 2009 16:29:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials, UAW/Unions

Blaming the current economic conditions and still wounded from a near-fatal labor strike, Detroit-based auto supplier American Axle & Manufacturing Inc. will reportedly lay off at least 500 workers at its largest plant and send the remaining jobs south of the border to Mexico.

This time last year, the manufacturer was embroiled in an ongoing UAW labor dispute. The strike crippled General Motors, eventually forcing the automaker to stop production on many of its popular trucks before American Axle reached terms with the union and ended the strike after three months. The dispute couldn't have come at a worse time. Its resolution last spring was followed by a plummeting economy dumping vehicle production, choking GM's demand for American Axle components (accounting for 74% of the floundering supplier's sales).

Founded in 1994, American Axle will start moving the facility's production to Guanajuato, Mexico over the summer. More than 500 of the 700 workers at the Detroit complex will be laid off indefinitely, and only 232 of the company's most senior workers will likely have jobs remaining when the dust settles later this year. Thanks for the tip, Farzin.

[Source: The Detroit Free Press]

REPORT: Largest American Axle plant to idle as work shifts to Mexico originally appeared on Autoblog on Wed, 29 Apr 2009 16:29:00 EST. Please see our terms for use of feeds.

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