Chrysler Cutting 25% of Salaried Workforce

[Eleanor]

Chrysler LLC says it will cut 25 percent of its salaried work force starting next month.

The company says the cuts are in addition to those previously announced and will be done through involuntary layoffs and voluntary retirements and buyouts.

http://ap.google.com/article/ALeqM5i...FhfaAD940U5JG1

[Thaco]

does this really come as a surprise to anybody?

[Redlyne_mr2]

Wow so glad I dont work for them anymore, although it was Daimler at the time.

[Xtrema]

You didn't work directly with Chrysler did ya?

Dealers are not the same entity.

Wonder if the dealers are finding exit strategy now.

[Redlyne_mr2]

Originally posted by Xtrema
You didn't work directly with Chrysler did ya?

Dealers are not the same entity.

Wonder if the dealers are finding exit strategy now.

Sure did ..factory rep on the MB side

[pinoyhero]

Scary ... tough times ahead it seems.

[ExtraSlow]

Chrysler and GM will also be shedding dealerships.
Chrysler has over 4000 dealers, and has already announced that it plans to close 15%. I could see that going up to 30% even without a GM merger. Maybe 50% if the merger goes through.

Struggling dealerships ar a constant drain on the mother corporation.

[510-Trevor]

I think Chrysler is the best run of the "Big 3". By cutting salaried positions they are saving money without effecting production. While far from debt free, unlike GM and Ford, Chrysler actually has money in the bank, $11.7Billion in cash and marketable assets available.
GM on the other hand is burning through $1Billion a month just to stay operational and only wants to trade their remaining GMAC shares so that they can get Chrysler's cash.
The "Big 3" cannot survive with the current deals they have in place with the unions. After pensions and everything is accounted for, they pay on average $67 hour to the assembly line workers. Closing down plants will do nothing for the long term stability of these companies. And from what I've seen of the auto workers unions, they don't care. Earlier this year, the head of the american union was still trying to get union workers 'jobs for life'.
If GM gets Chrysler, say good bye to Chrylser and Dodge brands. Jeep will probably survive, and Nissan may buy the truck division, but I would expect 99% of the dealers would close.

[Xtrema]

Originally posted by 510-Trevor
Dodge brands. Jeep will probably survive, and Nissan may buy the truck division, but I would expect 99% of the dealers would close.

Chrysler for sure. If I'm GM, I would shed Pontiac, Buick before I will shed Dodge. Jeep is a keeper, they should just fold Hummer. Nobody wants that brand.