Thursday, November 1, 2007

Chrysler cutting 7,000 jobs, drops 4 models, but the PT Cruiser remains!

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The first major round of job cuts at Chrysler is expected to be announced later today with up to 4,900 hourly workers and 2,100 salaried and contract jobs planned to be axed. Under the guidance of newly hired CEO Bob Nardelli and parent company Cerberus Capital Management, Chrysler officials are acting out a plan approved during the carmaker’s first board meeting on Tuesday, which will also see an additional 13,000 jobs cut over the next three years.

The latest announcement is part of Chrysler’s official turnaround plan which also includes provisions to drop several models from its lineup including the Chrysler Pacifica, Crossfire, PT Cruiser convertible and the Dodge Magnum. Surprisingly the standard PT Cruiser remains.

Most of the jobs will be cut from the Jefferson North and Sterling Heights assembly plants as well as the Toledo and Brampton sites, reports the Detroit Free Press.

Since Chrysler is now a private company it’s not obligated to make its financial results public but analysts predict losses for the first three months of this year to be about $2 billion.

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