DaimlerChrysler Plans Major Workforce, Plant Cutbacks

DaimlerChrysler's (DCX) turnaround plan for its ailing Chrysler unit calls for cutting 26,000 jobs over the next three years for a 20% reduction in the workforce, and either closing outright or curbing output at a number of factories.

hat will of course shrink signficantly the amount of freight the company needs to be hauled by trucks, either as parts brought into assembly plants or finished vehicles distributed from those plants to dealers.

The cuts will hit 19,000 hourly and 6,800 salaried employees, with 75% of the reduction occurring before year's end, the company said. The bulk of the cuts are at North American facilities (see below).

Six plants are to be idled over the next two years to reduce Chrysler's capacity. Reductions in shifts and line speeds are also anticipated, as are adjustments in component, stamping and powertrain volumes.

The company detailed its planned manufacturing actions by location.

For 2001:

b>United States

• Belvidere (Ill.), eliminate one shift.
• Jefferson North (Detroit), eliminate one shift.
• Toledo II (Ohio) Assembly Plant, eliminate one shift.
• Newark (Delaware) Assembly Plant, reduce line speed.

Canada

• Bramalea (Brampton, Ont.), eliminate one shift.
• Pillette Road (Windsor, Ont.), eliminate one shift.
• Windsor (Ontario) Assembly Plant, reduce line speed.

Mexico

• Toluca Transmission Plant will close.

South America

• Cordoba (Argentina) Assembly Plant will close.
• Campo Largo (Parana, Brazil) Assembly Plant will discontinue production and be idled; an evaluation will be made on any future production possibility at that facility.

Planned for 2002:

b>United States

• Engine production will be shifted from the Mound Road (Detroit)Engine Plant to Mack I and Mack II (Detroit).

Mexico

• Lago Alberto Assembly Plant will shift production to the Saltillo Assembly Plant.
• Toluca Engine Plant will close.

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