Chrysler to cut 1,000 salaried jobs

[Dragon]

http://www.usatoday.com/money/autos/2008-0...sler-cuts_N.htm

DETROIT — Chrysler said Wednesday it will cut 1,000 salaried jobs worldwide by Sept. 30 as it tries to return to profitability amid a severe downturn in U.S. sales.

The automaker announced the cuts in a letter to employees. Chrysler spokesman David Elshoff said the company hopes most of the cuts will be accomplished through early retirements, attrition and voluntary separation programs, but he said involuntary layoffs will be considered if the company fails to meet its targets.

"In light of an expected prolonging of the current market conditions, the company has made the difficult decision to revisit the current staffing levels in both its salaried and supplemental work force," Chrysler said in a statement.

Chrysler's U.S. sales fell 22% in the first six months of this year as customers shunned its trucks and sport-utility vehicles in favor of smaller, more fuel-efficient cars. Industrywide U.S. sales were down 10%, but the decline hit Chrysler harder because trucks and SUVs make up 72% of the company's U.S. sales.

The cuts come on top of 3,000 white-collar cuts made in 2007. Chrysler also plans to cut some of its 2,700 temporary workers in the new round of layoffs, on top of the 1,100 temporary workers it cut in November. It didn't say how many temporary jobs will be cut.

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Chrysler is the latest U.S. automaker to cut its salaried work force as high gas prices and the weak economy continue to eat into U.S. sales. Ford Motor (F). has set a goal of cutting salaried costs by 15% by Aug. 1, while General Motors (GM). said last week it plans to cut salaried costs in the U.S. and Canada by 20%. Ford and GM haven't said how many jobs will be affected, but it's expected to be several thousand at each company.

Chrysler's finances have been under wraps since it was bought last year by the private-equity company Cerberus Capital Management. But analysts consider the company the weakest of the Detroit Three in the current sales slump because of its dependence on the North American market and its heavy reliance on trucks and SUVs.

Chrysler had $9 billion in cash at the end of last year, according to JPMorgan auto analyst Himanshu Patel. Patel recently estimated the automaker will burn through $4 billion this year and could be forced to file for bankruptcy protection or sell off parts of its business in the second half of 2009 if industry conditions don't improve.

Chrysler said Wednesday its liquidity has remained unchanged since December because of aggressive reductions, asset sales and production cuts. Most recently, Chrysler announced in June that it will shutter its St. Louis South plant, which makes minivans, on Oct. 31, and will cut a shift at its St. Louis North plant, which makes pickups, in September. Those moves will affect 2,400 jobs.

"However, the signs of economic challenge continue for the U.S. market and as a result, further actions must be taken to improve our business and return to profitability," Chrysler said.

[CSpec]

Only 1,000? Chrysler is in deep doo-doo.

[A Horse With No Name]

Interestingly, one of my very good friends who is a realist and a MOPAR guy sees them going down within the next 5-10 years.

Chrysler is in deep crap indeed, I think.

Chris

[CMG]

1000 layoffs = too little

1000 layoffs = too much

Strange how I knew 1000 layoffs would NOT be "just right"!

:AH-HA_wink:

Ahhhh! C&G......

[Satty]

Well, ideally, 0 layoffs would be "just right" so any number of layoffs (by any company, Chrysler, Ford, GM, Toyota, ETC) is a sign that the company doesn't believe itself to be in the strongest position.

The article just said salaried employees, didn't say what these salaried employees do, they could be redundant bureaucratic beancounter types that they could do without.

[haypops]

Interestingly, one of my very good friends who is a realist and a MOPAR guy sees them going down within the next 5-10 years.

I would think that there would be an economic turnaround within that time frame. If Chrysler can last tht long they should be able to go the distance?

On the other hand they let my son inlaw(contrct worker) go last month.

[Dragon]

Well, ideally, 0 layoffs would be "just right" so any number of layoffs (by any company, Chrysler, Ford, GM, Toyota, ETC) is a sign that the company doesn't believe itself to be in the strongest position.

The article just said salaried employees, didn't say what these salaried employees do, they could be redundant bureaucratic beancounter types that they could do without.

from what I've been told from a salaried employee, it will include many different area's, including the manufacturing area

[smk4565]

They'll be gone in 10 years. They don't have overseas sales to count on, the American market is down. Plus they don't do anything particularly well, they are always bottom half in quality/reliability, they are worst of the major auto makers in fuel economy, their interiors are bad, their exterior styling looks dated quickly, etc. The market is too competitive now to get by with lackluster product.

[Intrepidation]

They'll be gone in 10 years. They don't have overseas sales to count on, the American market is down. Plus they don't do anything particularly well, they are always bottom half in quality/reliability, they are worst of the major auto makers in fuel economy, their interiors are bad, their exterior styling looks dated quickly, etc. The market is too competitive now to get by with lackluster product.

Well for one, their sales are up in other markets, like Canada. Granted, NA is by far their largest and most important market, just pointing that out.

Interiors are bad due to intense cost cutting which is at least partly the result of by MB, after the Pacfica and LX models. If you notice, the lastest vehicles have better interiors, the Journey's design may not be amazing, but materials quality is much better than the Avenger, and the Ram looks to have a very nice interior. We'll see how the interiors are after the midsizers/compacts get an MCE, withc laimedmuch-improved interiors.

As for exteriors, styling is always subjective, but the pre-MB era cars have been noted for aging very well, which includes the cloud cars and the LH models. The PT Cruiser is another example of a car that's age gracefully, and their are auto-rag reviews to prove it. For me, the upper-trim LX cars and the Magnum in any form always get a 2nd look from me.

We'll see what happens. If Cerberus is actuallyc ommited tp Chrysler, the next round of cars will be the ones to watch. The Ram shows signs of this quality leap. And yes, the Ram is debuting at teh worst time, which is ashame.

[smk4565]

The Sebring is one of their latest vehicles, the interior is terrible. A 300C can cost up to $45,000, compare that interior to a CTS. The Journey interior is nothing good either, better than the Avenger maybe, but put it next to a Ford Edge or Toyota Highlander and it looks horrible. The Journey's navigation screen is at the very bottom of the console too, who puts a nav screen by the floor.

I think Chrysler used to have a slogan "inspiration comes standard" they should use "body roll and understeer comes standard" as their new slogan.

[Intrepidation]

The Sebring is one of their latest vehicles, the interior is terrible. A 300C can cost up to $45,000, compare that interior to a CTS. The Journey interior is nothing good either, better than the Avenger maybe, but put it next to a Ford Edge or Toyota Highlander and it looks horrible. The Journey's navigation screen is at the very bottom of the console too, who puts a nav screen by the floor.

I think Chrysler used to have a slogan "inspiration comes standard" they should use "body roll and understeer comes standard" as their new slogan.

The Sebring and Avenger were developed before Cerberus took over.

[A Horse With No Name]

...again it would be great to get Chryselr back. Look at the great cars they built in the 1960's, or the 1990's for that matter.

It will be interesting to see what "new" vehicles they come up with.

A cool Discontinued vehicle is the Crossfire, BTW. We have neighbors who bought a white one...and it is a cool car. Not my cup of tea, but cool none the less.

Chris

[smk4565]

Ah the glory days of the 90s when Chrysler had the New Yorker, Plymouth Prowler, Dodge Stratus and Eagle Vision. The Dodge Stealth was pretty sweet too, I don't know why it and the Ford Probe went away, those are the types of products that could save the American auto industry.

[Intrepidation]

Ah the glory days of the 90s when Chrysler had the New Yorker, Plymouth Prowler, Dodge Stratus and Eagle Vision. The Dodge Stealth was pretty sweet too, I don't know why it and the Ford Probe went away, those are the types of products that could save the American auto industry.

Hardly, the Stealth was cool but a rebadged 3000GT, a cool car but heavy and didn't handle as well as the styling suggested. It was also cramped. The Prowler. The Vision lived on as the 300M, along with the other LH cars. The LX replaced them with great success. LH and LX are large cars, the amrket is shifting to smaller cars. What Chrysler needs are vastly improved midsizers, the compacts, and a real replacement for the Neon.

But yes, the late 90's were good times for Chrysler.

Edited July 28, 2008 by Dodgefan

[CMG]

I think Chrysler used to have a slogan "inspiration comes standard" they should use "body roll and understeer comes standard" as their new slogan.

Yeah sure.

Take your daily driver and show a Chrysler 300 SRT8 who's boss!

You go girl!

LOL!!!!!!!!

[CMG]

Ah the glory days of the 90s when Chrysler had the New Yorker, Plymouth Prowler, Dodge Stratus and Eagle Vision.

You gotta be one of the LEAST intelligent posters in here in awhile, and THAT is saying something!

hahaha

"Glory Days"

Too funny!

[CMG]

Hardly, the Stealth was cool but a rebadged 3000GT, a cool car but heavy and didn't handle as well as the styling suggested. It was also cramped. The Prowler.

The Stealth was a Mitsubishi. The Mitsubishi GTO actually... (The GTO was actually rebadged as both the 3000GT and the Stealth) I wouldn't even consider it a Chrysler product really myself... The Prowler was a killer little car, but how many cars that far out of the mainstream that seat two can an automaker sell?

[smk4565]

I was being sarcastic when I said the 90s were the glory days of Chrysler. I thought that would be obvious, as the Vision, New Yorker, and Stratus were total garbage, the Mitsubishi rebadge was over priced and not that great, and the Prowler (sales bust) had 250 hp and was nearly as expensive as a corvette.

My daily driver isn't as fast as a 300 SRT8, but my car's interior is better and I have a DOHC V8, which I will take any day over an enlarged pushrod from a Dodge Ram.

[Intrepidation]

I was being sarcastic when I said the 90s were the glory days of Chrysler. I thought that would be obvious, as the Vision, New Yorker, and Stratus were total garbage, the Mitsubishi rebadge was over priced and not that great, and the Prowler (sales bust) had 250 hp and was nearly as expensive as a corvette.

My daily driver isn't as fast as a 300 SRT8, but my car's interior is better and I have a DOHC V8, which I will take any day over an enlarged pushrod from a Dodge Ram.

The 90's actually was a good time for Chrysler. They revolutionized the staid pickup segment with the 2nd gen Ram, the introduced Cab Forward Design, they continued to innovate with their minivans, they had the not too big not too small Dakota and Durango, and so on. And of course their was the Viper.

Edited July 29, 2008 by Dodgefan

[VenSeattle]

I'll even agree that the 1990's was a golden age for Chrysler... they convinced me to buy one!!!! LOL

The LH sedans, Viper, Prowler, and concept cars turned the design world on their side. The 1st-gen Concorde could have debuted last year. The LH-based New Yorker & LHS made large luxury sedans "modern" and 'acceptable" to a younger generation. The new V6-engine family developed from their short acquisition of Lamborghini proved to be reliable. The 3.5l is still a modern and acceptable engine 10+ years later.

The 300M was a step in the right direction, but the rest of the 2nd-gen LH sedans failed to live up to their predecessors. As much as people want to laud the LX vehicles, their sales never overshadowed the LH-sedan sales. Their transaction prices were initially higher because enthusiasts will pay full price, but they’re not as practical as the LH sedans were and their discounts now reflect it. It's volume suicide to replace a mainstream vehicle with a niche product.

The cloud cars had so much potential but were cursed with a tri-diamond powertrain. It couldn't even compete with a near 10-year old Acura-borrowed powertrain on reliability that was shoehorned into the MCE Accord. Ford's Contour and Mystique (even GM's N-bodies) proved to be a better buy.

Just my opinion and observations... I'm not soliciting CMG, SMK, or Dodgefan backlash on this one. I'm strictly commenting as a former Chrysler fan who was extremely disappointed with what happened 1998-onward.

[Robert Hall]

The 90's actually was a good time for Chrysler. They revolutionized the staid pickup segment with the 2nd gen Ram, the introduced Cab Forward Design, they continued to innovate with their minivans, they had the not too big not too small Dakota and Durango, and so on. And of course their was the Viper.

And of course the Grand Cherokee and Cherokee, which were hits. They convinced me to buy a Jeep, and I've been very happy with my '00 GC.

[Intrepidation]

And of course the Grand Cherokee and Cherokee, which were hits. They convinced me to buy a Jeep, and I've been very happy with my '00 GC.

I keep forgetting about the Jeeps, shame on me

The GC is a favorite of mine when it comes to SUVs. My boss drives a last gen one, it's very comfy and she loves it, she's also got a Z3.

I love the original Cherokee, you could beat the living hell out of them, plus they had the look of the classic SUV. Someday I want to pick up a used one for offroading and winters.

[CMG]

My daily driver isn't as fast as a 300 SRT8, but my car's interior is better and I have a DOHC V8, which I will take any day over an enlarged pushrod from a Dodge Ram.

Funny how a guy daily driving a 300 SRT8 with an "enlarged pushrod from a Dodge Ram" wouldn't look twice at your car.

Why?

You would be BEHIND HIM.

LOL!!!!!!!!!

[CMG]

My daily driver isn't as fast as a 300 SRT8, but my car's interior is better

Ever seen the interior of an SRT8?

I doubt your post has any merit. Like that would be unusual....

(Now THAT is "sarcasm" )

[CMG]

The LH sedans, Viper, Prowler, and concept cars turned the design world on their side. The 1st-gen Concorde could have debuted last year. The LH-based New Yorker & LHS made large luxury sedans "modern" and 'acceptable" to a younger generation. The new V6-engine family developed from their short acquisition of Lamborghini proved to be reliable. The 3.5l is still a modern and acceptable engine 10+ years later.

I agree, the Prowler was a heckuva gamble to produce as a production car, I was impressed to say the least.

The Viper was a second American sports car at least, which improved both it and the Corvette over the years with competition amongst themselves.

[A Horse With No Name]

I keep forgetting about the Jeeps, shame on me

The GC is a favorite of mine when it comes to SUVs. My boss drives a last gen one, it's very comfy and she loves it, she's also got a Z3.

I love the original Cherokee, you could beat the living hell out of them, plus they had the look of the classic SUV. Someday I want to pick up a used one for offroading and winters.

The Original Cherokee has to be one of the greatest SUV's ever in terms of durability. Our neighbor, Tom put like 450,000 miles on one before deciding to upgrade to a Porsche Cayenne.

Chris

[A Horse With No Name]

I agree, the Prowler was a heckuva gamble to produce as a production car, I was impressed to say the least.

The Viper was a second American sports car at least, which improved both it and the Corvette over the years with competition amongst themselves.

the Prowler is on my very short list of cars that I want to own before I die. This has to be one of the coolest cars, ever, period, end of discussion.

Viper prices are becoming very favorable, and I've thought about going in 50/50 with my son Joel and getting one.

And it is doubtful the vette would be what it is today without the Viper.

Chris

[A Horse With No Name]

I'll even agree that the 1990's was a golden age for Chrysler... they convinced me to buy one!!!! LOL

The LH sedans, Viper, Prowler, and concept cars turned the design world on their side. The 1st-gen Concorde could have debuted last year. The LH-based New Yorker & LHS made large luxury sedans "modern" and 'acceptable" to a younger generation. The new V6-engine family developed from their short acquisition of Lamborghini proved to be reliable. The 3.5l is still a modern and acceptable engine 10+ years later.

The 300M was a step in the right direction, but the rest of the 2nd-gen LH sedans failed to live up to their predecessors. As much as people want to laud the LX vehicles, their sales never overshadowed the LH-sedan sales. Their transaction prices were initially higher because enthusiasts will pay full price, but they’re not as practical as the LH sedans were and their discounts now reflect it. It's volume suicide to replace a mainstream vehicle with a niche product.

The cloud cars had so much potential but were cursed with a tri-diamond powertrain. It couldn't even compete with a near 10-year old Acura-borrowed powertrain on reliability that was shoehorned into the MCE Accord. Ford's Contour and Mystique (even GM's N-bodies) proved to be a better buy.

Just my opinion and observations... I'm not soliciting CMG, SMK, or Dodgefan backlash on this one. I'm strictly commenting as a former Chrysler fan who was extremely disappointed with what happened 1998-onward.

Exactly. The LX series cars were awesome!

Chris