The Cerebus axe starts chopping at Chrysler

[Magnumcharger]

Chrysler today issued the following news release:

Chrysler Announces New Plans to Balance Supply and Demand

•   Chrysler Announces Product and Plant Changes
•    Industry-wide volume reduction and sales slow down requires plant
adjustments   
•   Four products will be cancelled from Chrysler line-up; while adding
two all-new products and two hybrid models

Chrysler LLC today announced that it would make volume-related
reductions at several of its North American assembly and powertrain plants,
and eliminate four products from its line-up.

Shifts will be eliminated at five North American assembly plants which,
combined with other volume-related manufacturing actions, will lead to
a reduction of 8,500-10,000 additional hourly jobs through 2008.

Additional actions include reductions of salaried employment by 1,000
and supplemental (contract) employment by 37 percent. The Company also
plans to eliminate hourly and salaried overtime and reduce purchased
services due to reduction in volume.

The volume-related actions are in addition to 13,000 jobs eliminated by
the three-year Recovery and Transformation Plan (RTP) announced in
February. The objectives of the RTP remain the same.

"The market situation has changed dramatically in the eight months
since Chrysler established the Recovery and Transformation Plan as its
blueprint," said Bob Nardelli, Chairman and Chief Executive Officer.
"Annual industry volume (U.S. market) then was running at a 17.2 million
clip. Now, we expect a seasonally adjusted annual volume for 2007 to be
significantly lower and carry over into 2008."

"We have to move now to adjust the way our company looks and acts to
reflect a smaller market," added Tom LaSorda, Vice Chairman and
President. "That means a cost base that is right-sized and an appropriate level
of plant utilization."

LaSorda added that third-shift operations at assembly plants usually
reflect a high demand after a product is launched. Three of the five
plants affected by this action are the result of elimination of third
shifts" in Belvidere, Illinois; Toledo, Ohio, and Brampton, Ontario.
 
In contract negotiations just concluded with the United Auto Workers,
Chrysler committed to spending more than $15 billion on products, plants
and engineering during the life of the contract through 2011.

The company announced that it will eliminate four models through 2008,
including Dodge Magnum, the convertible version (only) of Chrysler PT
Cruiser, Chrysler Pacifica and Chrysler Crossfire. In the same time
frame, Chrysler will add two all-new products to its portfolio: the Dodge
Journey and Dodge Challenger, along with two new hybrid models, the
Chrysler Aspen and Dodge Durango.

"These actions reflect our new customer-driven philosophy and allow us
to focus our resources on new, more profitable and appealing products,"
added Jim Press, Vice Chairman and President. "Further, these product
actions are all in response to dealer requests."

Manufacturing Actions

Chrysler will eliminate shifts at five assembly plants, and take
further volume-related actions at several other facilities. It will:

Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the
first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and
Jeep Compass.

Drop second-shift operations at its Jefferson North (Detroit, Mich.)
Assembly Plant in the first quarter 2008. It's expected that the plant
will return to two shifts in first quarter 2010 with the introduction of
the next generation of sport-utility vehicles. The addition of a third
shift will remain an option, depending on market demand. Jefferson
North builds the Jeep® Grand Cherokee and Jeep Commander.

Drop third-shift operations at the Toledo (Ohio) North Assembly Plant
in the first quarter 2008. Toledo North builds the Jeep Liberty and
Dodge Nitro.

Drop third-shift operations at Brampton (Ontario) Assembly Plant in
first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger
and Dodge Challenger. The Dodge Magnum will be discontinued.

Drop second shift operations at Sterling Heights (Mich.) Assembly Plant
in first quarter 2008. Sterling Heights builds the Dodge Avenger and
Chrysler Sebring sedans and Chrysler Sebring Convertible.

In addition, Mack Avenue (Detroit) Engine Plant II will return to a
traditional two-shift / two-crew operation in the first quarter 2008 after
operating on a three-crew, two-shift, 120-hour-per-week (3/2/120)
schedule. Mack II builds the 3.7-liter V-6 engine.
 
"I'm confident that we have the right team in place and a business plan
that doesn't need to be re-written," concluded Nardelli. "Like all
good plans, the RTP has built-in flexibility that allows us to stay one
step ahead of market change. And that is the way to long-term sustained
profitability."

[Charger_Fan]

I hope they can make the company run well for years to come.
I also hope one of those "two all new products" is full steam ahead on production of the '08 Chally!

[moparstuart]

I hope they can make the company run well for years to come.
I also hope one of those "two all new products" is full steam ahead on production of the '08 Chally!

dito  and hopefully they minimize the job cuts but keep the place going

[41husk]

This is common buisness practice, dropping products that are not selling, and reducing production of slow selling items, sounds like good buisness.  I am sure the workers laid off due to this re assesment don't agree. I hope they keep there heads above water for many years to come.

[BigBlackDodge]

I hope they can make the company run well for years to come.
I also hope one of those "two all new products" is full steam ahead on production of the '08 Chally!

In the same time
frame, Chrysler will add two all-new products to its portfolio: the Dodge
Journey and Dodge Challenger, along with two new hybrid models, the
Chrysler Aspen and Dodge Durango.


Looks like it's still a go.



BBD

[TruckDriver]

"The company announced that it will eliminate four models through 2008,
including Dodge Magnum, the convertible version (only) of Chrysler PT
Cruiser, Chrysler Pacifica and Chrysler Crossfire."


I personally think they were all a mistake anyway. Ugly as hell.    But that is just MY opinion as I prefer old school styling and not arrow dynamic looks

[68charger383]

"The company announced that it will eliminate four models through 2008,
including Dodge Magnum, the convertible version (only) of Chrysler PT
Cruiser, Chrysler Pacifica and Chrysler Crossfire."


I personally think they were all a mistake anyway. Ugly as hell.    But that is just MY opinion as I prefer old school styling and not arrow dynamic looks

The magnum has grown on me....but I would not buy one.

[moparstuart]

"The company announced that it will eliminate four models through 2008,
including Dodge Magnum, the convertible version (only) of Chrysler PT
Cruiser, Chrysler Pacifica and Chrysler Crossfire."


I personally think they were all a mistake anyway. Ugly as hell.    But that is just MY opinion as I prefer old school styling and not arrow dynamic looks

The magnum has grown on me....but I would not buy one.

me too!!

[bull]

Anyone would have done the same or more amount of cutting. I don't know of any big business that doesn't undergo cuts once it's taken over by another company. I'm actually surprised they aren't cutting more.

[Steve P.]

Get out the calenders boys. My bet is that Chrysler goes up for sale in the year 2011. It will take them 3 years to figure out that the new Chally is a major hitter and some floor sweeper to be overheard in a meeting that they SHOULD build a retro CUDA. When the Cuda looks like it will be built for sure someone will make a move to sell and it will be on the block once again..

My suggestion to MA MOPAR is to end production of all GASOLINE MOTORED TRUCKS. ALSO get rid of the 2500 series all together. Build only Heavy 1/2 tons, 1 ton single rear wheel and 1 ton dually's in the light duty trucks. ALL trucks get Cummins diesels. All trucks get 2-speed rear ends. City/Highway. Also all trucks will come fully loaded.  This will get the EPA off their backs as the diesels do much better on fuel. What does anyone actually need a 3/4 ton for?? There is only a few hundred pounds between them.. Why not a 1 ton??

Years ago GM started using only 1 steering column in their vans. ALL columns are tilt. Some did NOT come with a tilt lever. If the dealer ordered WITH TILT it came with a lever and slotted collar. If not it came with a non-tilt collar and no lever.   Why build 2 different columns when you can build just 1 and use them all.. Saves a boat load of money.

I heard something about Ford coming back out with the little Bronco. I bet it will be hydrogen...

[dukeboy_318]

"The company announced that it will eliminate four models through 2008,
including Dodge Magnum, the convertible version (only) of Chrysler PT
Cruiser, Chrysler Pacifica and Chrysler Crossfire."


I personally think they were all a mistake anyway. Ugly as hell.    But that is just MY opinion as I prefer old school styling and not arrow dynamic looks

I agreem ugly

[Khyron]

awwwwwwww, I like the magnum

[Mean 318]

I like em all but the PT and hate to see people loose their jobs but it beats everyone loosing their jobs and the company folding!

[Mike DC]

 
I think they need to stop chasing odd styling exercises & fluke stuff and just concentrate on staying ahead of the game in the mainstream car/truck markets. 
Enough with the "crossover" vehicles.  People just want a sedan or a truck that doesn't completely suck ass. 


The PT Cruiser wasn't bad, but it was basically a fluke. 

The Prowler?  The Crossfire? 
Umm . . . Retro cars sell a lot better when they appeal to generations that are still alive. 

Let's hope they start to get it with the Chally.

 

[Ghoste]

I think the "volume related reduction" (layoffs) were happening no matter who owned it.  I'm glad to see they are getting rid of some of the poorer selling models.  I personally like the Magnum but I only need look around the streets to know I'm in the minority on that one.  As for PT Cruiser 'verts and the incredibly overpriced Pacifica...      And the Crossfire was just a way for Mercedes to dump some excess ugliness on their uncultured American underlings.

[41husk]

I think the reason contract negotiations plaid a part as well, more pay better bebefits for less employees

[Headrope]

Seems many are thinking of the Challenger as being the future of Chrysler. I'd suggest there's a reason such cars are referred to as "retro."
I'd wager while many older folks who remember or wish they were around during the muscle car era will praise the new Challenger the majority of people actually looking to purchase a new car will find it somewhat impractical. Those who don't view it that way will likely be retro Mustang owners who have made enough payments to realize that it wouldn't make sense to sell or trade in their current car. Whether that's Daimler's, Chrysler's or Cerebus' fault I don't know. But the Challenger should have been released a long time ago to have a fair shot. Its status now is somewhat relegated to that of a Prowler - cool car with a limited market.

[Ghoste]

I agree and the limited availability and "special dealer markup" aren't going to help Challenger sales either.  They need a small car like the Caliber and a mid size four door that doesn't pretend to be anything except a family car for the bulk of their sales.  It sometimes seems like they are trying to find the next great fad instead of concentrating on the bread and butter transportation.
Then again, a good argument could be made that Ford and GM were concentrating too much on the vanilla cars and look where they're at.  The truth is, none of us are any better at reading the crystal ball than the auto execs.

[Mike DC]

The truth is, none of us are any better at reading the crystal ball than the auto execs.

I agree about specific model emphasis issues.

But not about the general direction of quality & public perception issues.  And not about styling either. 
IMHO the execs could learn a lot about these two issues from the average guy on this board. 

 

[Really?]

They should have a Subura WRX/STi or a Mitsu EVO-type car in the line-up. The Caliber sucks, drove one for about a month and the car screams "CHEAP." Saw in the new car rags that the turbo version was sub-par w/ the imports (yes I know it has abit of foriegn bits to it, but the car as a whole is not competitive). The younger generations don't want to build or buy American-corp cars in the same numbers as the foriegn stuff. They'll start with Hondas, Scions,Toyota's then move to Lexus,Audi, BMW. Drive an A6 or mid-level 3-series, then jump into a mid-market domestic. No comparison in feel...even though they are MORE dependable than most think. 

[Brock Samson]

The Germans raped chysler, spent the $5 billion war-chest on their new models like the maybach and S class, while delaying all the DCX products two years.
stick a fork in it... 

[hemihead]

The Germans raped chysler, spent the $5 billion war-chest on their new models like the maybach and S class, while delaying all the DCX products two years.
stick a fork in it... 

All true . And for those of you who keep drooling over the new Challenger, just remember that is ALL DCX. It is an antique chassis design already as we speak. You cannot keep a car company turning a profit by building retro cars with poor fuel economy and limited production.

[GeneralLeeTESH]

WHEN in the HELL are these stupid car manufacturers going to get it? I refuse to spend more than 5 grand on a "wife-mobile" or daiy commuter. This is WHAT the Insurance auction is for ! These companies need to bring back the GD Musclecars-Period !
European and oriental drifter cars are another GD waste of money ! I think BMW cars esp. are garbage crap-way overpriced, also ! Audi kicks better ass and is 1/3 to 1/2 the cost less !!!
All that matters are 2 door HEMI cars with Posis and 4 wheel disc brakes...and rear wheel drive-PERIOD...otherwise- I'm going to buy a horse and ride it and let it shit all over the GDamned highway Gdamn it !!!

[Really?]

Yeah, while true import stuff is not my cup of tea (Rhys Millen did win quite abit in a Holden Monaro/Pontiac GTO drifting the piss out of it), the younger generation does. Chrysler needs to be competitive in that market for the future; just take a look at Mercury as a prime example... Just went to the Seattle Auto Show and the domestic that had the most traffic was GM (the Camaro, Solstice, their SUV/trucks; hell, the Buick Enclave was swarmed and it has a 3 month backlog even with shifts being added at the plant in Lansing). Never fear though, Kirk K. not only is the single biggest GM stockholder, he is the man behind the takeover of Chrysler. Blasphemy or not , maybe he'll bring the playbook over from GM 'cause it is working!

[Ghoste]

I'm afraid Tesh, that musclecars will never return as anything more than retro novelty acts.  The truth is, we were always in the minority (both in society overall and the automakers product plans) even when the supercars were a popular part of the automotive culture.  This is the era of the environment and it's only going to go further in that direction.