Report: DaimlerChrysler to cut 10K jobs |
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Published
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Mon, 05 Feb 2007 18:49
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AUBURN HILLS, Mich. (AFX) - DaimlerChrysler AG's Chrysler arm plans to slash at least 10,000 hourly jobs and close plants in Newark, Del., and Detroit, according to a newspaper report.The Detroit News reported Monday that the cuts will be disclosed when the German-American automaker makes public its restructuring plan Feb. 14. It cited unidentified people familiar with the plan, dubbed 'Project X.'DaimlerChrysler also will propose sharing vehicle platforms and parts between its Chrysler and Mercedes brands as part of the plan, the newspaper said it was told.The plan is to be unveiled to DaimlerChrysler's supervisory board for approval Feb. 13. It will be publicly unveiled the following day when the automaker releases its 2006 earnings, the newspaper report said.DaimlerChrysler spokesman Mike Aberlich told The Associated Press on Monday that he could not comment on the plan or specific actions the company will take. He confirmed the company will present its 'plan for recovery' Feb. 14.Kevin Tynan, an analyst with Argus Research Co., told the Detroit Free Press that he expects between 8,000 to 10,000 Chrysler jobs to be cut.Some analysts say the Delaware plant looks to be a prime candidate for closure, in part because of its location on the East Coast, away from Midwest parts suppliers, and because of the drop in sales of the Durango sport utility vehicle, which is assembled there.'Obviously, they have got to consolidate some production facilities. I really can't hold much hope out for the Durango plant in Newark,' Joe Phillippi, principal of AutoTrends Consulting, told the Free Press for a story published Sunday.Chrysler lost $1.5 billion in the third quarter, and its sales fell 7 percent for 2006.DamilerChrysler's U.S. shares fell 50 cents to $62.48 in midday trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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DaimlerChrysler says FY report timetable threatened 