Chrysler LLC today announced a gesticulate of manufacturing actions to decrease capacity and headcount. They also announced that four products would be cancelled from the Chrysler lineup and that two new products and two hybrids would be introduced.
Perhaps the most significant displace is of the Dodge Magnum. This distinctively styled wagon has always been a favorite of exploit but as a "wagon" it has not resonated come up with the buying public. When the Charger 4-door sedan was added to the Dodge lineup. Magnum was relegated to the enumerate of forgotten models at the Dodge store. There is probably not a cooler looking vehicle on the road when it is well-dressed by a tuner than the move Magnum.
Chrysler also announced that it ordain blackball the Chrysler PT Cruiser convertible the and the Chrysler Crossfire. All are low volume products that have not captured the attention of the market. While killing four products. Chrysler adds the Dodge Journey Crossover SUV and Dodge Challenger muscle car to the Dodge lineup. Seems like a very fair trade.
Next on the block we'd like to see the demise of the Jeep Commander and Jeep accomplish - both products Jeep does not need. While Commander has Jeep DNA. Compass does not and Jeep should keep pure to its Trail-Rated DNA. Commander should be on the block because it is UGLY. Aspen. Dakota and Durango could also be up for consideration to drop.
In addition to cancelling products. Chrysler will eliminate shifts at several plants to bring capacity in line with bespeak (merchandise shrinkage from 17.2 million units to around 16.2 million units). This will decrease hourly headcount by another 8,500 to 10,000 workers. Salaried headcount is to be reduced by another 1,000 staffers. These reductions are in addition to a 13,000 job reduction previously announced by Chrysler.
Chrysler Announces New Plans to Balance Supply and Demand • Chrysler Announces Product and Plant Changes • Industry-wide volume reduction and sales slow drink requires plant adjustments • Four products ordain 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 ordain 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 decrease 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 be the same. "The merchandise situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its design," 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 displace and displace over into 2008." "We undergo to act now to alter the way our company looks and acts to designate a smaller merchandise," added Tom LaSorda. Vice head and President. "That means a cost locate that is right-sized and an appropriate level of lay utilization." LaSorda added that third-shift operations at assembly plants usually reflect a high bespeak 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 affiliate 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 close in. Chrysler will add two all-new products to its portfolio: the move Journey and move 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 cerebrate our resources on new more profitable and appealing products," added Jim Press. Vice head 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 advance volume-related actions at several other facilities. It ordain: Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first accommodate 2008. Belvidere builds the Dodge Caliber. Jeep Patriot and Jeep accomplish. displace second-shift operations at its Jefferson North (Detroit. Mich.) Assembly Plant in the first quarter 2008. It's expected that the lay will return to two shifts in first accommodate 2010 with the introduction of the next generation of sport-utility vehicles. The addition of a third shift will be an option depending on merchandise bespeak. Jefferson North builds the Jeep® Grand Cherokee and Jeep Commander. Drop third-shift operations at the Toledo (Ohio) North Assembly lay in the first accommodate 2008. Toledo North builds the Jeep Liberty and move Nitro. Drop third-shift operations at Brampton (Ontario) Assembly lay in first quarter 2008. Brampton ordain build the Chrysler 300. move Charger and move Challenger. The move Magnum will be discontinued. Drop second alter operations at Sterling Heights (Mich.) Assembly Plant in first accommodate 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 accommodate 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 undergo the alter aggroup in place and a business intend 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 go ahead of merchandise dress. And that is the way to long-term sustained profitability."
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