Chrysler to Reveal Restructuring Plan Feb. 2007

[Variance]

Chrysler to Reveal Restructuring Plan Feb. 2007

Chrysler Group CEO Tom LaSorda presented the broad outlines of a plan to restructure the Auburn Hills automaker to DaimlerChrysler AG's management board Wednesday in Stuttgart, Germany, according to company sources.

DaimlerChrysler is scheduled to announce the plan -- which some analysts view as its final attempt to fix Chrysler -- in mid-February. The plan is likely to be put to DaimlerChrysler's governing supervisory board on Feb. 13 for approval and could be announced that day or on Feb. 14 during DaimlerChrysler's annual results conference. The news conference will be held at Chrysler's headquarters in Auburn Hills for the first time since the 1998 merger.

DaimlerChrysler spokesman Jason Vines declined to discuss details of the plan. But people involved say it's likely to include job cuts and the closure of at least two U.S. factories, including an under-utilized assembly plant in Newark, which makes sport-utility vehicles.

The closures will be part of Chrysler's strategy to reduce production to match demand. In addition, Chrysler is expected discuss a revamped future product plan that includes more small, fuel efficient vehicles. Overall, Chrysler has seven teams working on various aspects on the plan designed to cut costs by $1,000 per vehicle.

The Detroit News

[MyerShift]

Well, I personally feel that if all of Chrysler's vehicles were as passionate, impressive looking, entertaining, and quality infused as the LX cars, then Chrysler wouldn't be in this mess right now at all.