Valentine's Day Massacre
02-13-2007, 06:34 PM
#1
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Valentine's Day Massacre
Got you didn't I! 
Will tomorrow spell major layoffs?
Chrysler's "Valentine's Day Massacre"
Written by: Autocar staff
Auburn Hills, Mich. – 2/12/2007
Though DCX is expected to be profitable, Chrysler Group's 2006 losses may break the $1bi barrier, despite the introduction of new models like the Aspen (above) last year. (Chrysler photo)
Thousands of DaimlerChrysler employees in North America and Canada are facing the prospect of a less-than-romantic Valentine's Day, as that's the day the company is expected to announce its 2006 financial results, and as many as 10,000 redundancies along with them. Union spokesmen have christened it the “Valentine's Day Massacre”; however, industry critics suggest that the lay-offs are a crucial part of Chrysler's plan for continued profitability.
The job cuts are part of a strategy called “Project X”, which is intended to counter the negative effects of the rising price of gas in the domestic market, and the prohibitive employee pensions and healthcare overheads that threaten to overwhelm not just Chrysler but America's other major car companies, General Motors and Ford.
As if that weren't enough, Wednesday will also see DCX's 2006 production figures go public, and results are not expected to make confidence-inspiring listening even for those left with a job. It is predicted that, though DaimlerChrysler as a whole is likely to have been profitable in 2006, it will have made approximately 300,000 fewer vehicles than it did in 2005, and that Chrysler on its own will have lost around $1 billion.
Will tomorrow spell major layoffs?Chrysler's "Valentine's Day Massacre"
Written by: Autocar staff
Auburn Hills, Mich. – 2/12/2007
Though DCX is expected to be profitable, Chrysler Group's 2006 losses may break the $1bi barrier, despite the introduction of new models like the Aspen (above) last year. (Chrysler photo)
Thousands of DaimlerChrysler employees in North America and Canada are facing the prospect of a less-than-romantic Valentine's Day, as that's the day the company is expected to announce its 2006 financial results, and as many as 10,000 redundancies along with them. Union spokesmen have christened it the “Valentine's Day Massacre”; however, industry critics suggest that the lay-offs are a crucial part of Chrysler's plan for continued profitability.
The job cuts are part of a strategy called “Project X”, which is intended to counter the negative effects of the rising price of gas in the domestic market, and the prohibitive employee pensions and healthcare overheads that threaten to overwhelm not just Chrysler but America's other major car companies, General Motors and Ford.
As if that weren't enough, Wednesday will also see DCX's 2006 production figures go public, and results are not expected to make confidence-inspiring listening even for those left with a job. It is predicted that, though DaimlerChrysler as a whole is likely to have been profitable in 2006, it will have made approximately 300,000 fewer vehicles than it did in 2005, and that Chrysler on its own will have lost around $1 billion.
02-14-2007, 08:24 AM
#4
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Seen some news on CNN this morning. Looks like about 13,000 will get the cut. Daimler Chrysler is receiving pressure to just dump Chrysler however they feel they can still make it work. 20 new cars and 13 refreshed cars are expected by 2009 
. Thats alot of changes in 2 years.
. Thats alot of changes in 2 years.
02-14-2007, 11:40 AM
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Heres the story:
Chrysler Announces 13,000 Job Cuts
By TOM KRISHER, AP Business Writer
39 minutes ago
AUBURN HILLS, Mich. - In the next three years, 13,000 Chrysler workers will lose their jobs under a wrenching restructuring announced Wednesday that eventually may lead to a DaimlerChrysler divorce.
The Chrysler unit of the German-American automaker announced its long-awaited plan at its Auburn Hills headquarters, saying it would cut 16 percent of the U.S. division's work force, a move it hoped would return its U.S. operations to profitability by next year.
The plan was announced only hours after Chrysler's parent, DaimlerChrysler AG, said it was considering "far-reaching strategic options with partners" and that "no option is being excluded" as it reported a 40 percent drop in companywide profit for the fourth quarter.
The plan calls for closing the company's Newark, Del., assembly plant, and reducing shifts at plants in Warren, Mich., and St. Louis. A parts distribution center near Cleveland also will be closed.
Under the plan, 11,000 production workers _ 9,000 in the U.S. and 2,000 in Canada _ will lose their jobs over the next three years, and 2,000 salaried jobs also will be cut _ 1,000 this year and 1,000 in 2008.
The job losses are the latest in a yearlong series of devastating cuts in the ailing domestic auto industry, which likely will lose more than 100,000 jobs in all.
"We believe that this represents a solid plan to return to profitability and lay the groundwork for a solid future," Chrysler CEO Tom LaSorda said at a news conference.
DaimlerChrysler Chairman Dieter Zetsche said the company was looking into "further strategic options with partners" for Chrysler.
"In this regard we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," Zetsche said in a statement.
Analyst Georg Stuerzer with UniCredit, when asked if the wording in the statement was a sign that the company was mulling a spinoff of Chrysler, said, "the impression was right. This is what people are thinking it could mean."
He added that the restructuring could be the first step, likely followed by a push by DaimlerChrysler to find a partner with which to operate the Chrysler unit, or even find a suitable buyer for it.
Bank of America auto analyst Ron Tadross said in a note to investors that DaimlerChrysler "did not rule out disposing of its money-losing Chrysler division."
Tadross said he "would not be surprised if there is good interest in Chrysler. We see Chrysler as a decent business, at least relative to the other U.S. domestic manufacturers."
DaimlerChrysler said Wednesday that its fourth-quarter earnings plunged on weaker demand at the Chrysler unit, where sales fell 7 percent. DaimlerChrysler's profit fell to $761 million, or 74 cents per share, as revenue slipped to $53.7 billion. The Chrysler unit lost about $162.8 million in the fourth quarter.
The job cuts at Chrysler will reduce by 400,000 the number of vehicles that operations can produce each year.
The Delaware plant, which makes the slow-selling Dodge Durango and Chrysler Aspen mid-sized sport utility vehicles, employs about 2,100 workers. Chrysler plans to close it in 2009, with a shift reduction this year.
Dean Almuwalld, who works in painting on the Newark plant's assembly line and has worked at the plant for 13 years, learned its future from news reports.
"I'll take a transfer," the 33-year-old said as he walked into the local United Auto Workers hall. Almuwalld said he has relatives in Detroit. "I've got family there, so I'm ready to go."
The Warren truck plant, with 3,313 hourly employees, makes the Dodge Ram and Dakota pickups, which saw sales decline last year. Chrysler plans to eliminate a shift there this year.
The other plant to lose a shift is the St. Louis South assembly plant, which makes Chrysler and Dodge minivans. It has 2,850 workers and would lose the shift in 2008.
The Cleveland-area parts distribution center would be close sometime this year, Chrysler said.
DaimlerChrysler shares rose $2.70, or 4.2 percent, to $67.15 in morning trading on the New York Stock Exchange.
Chrysler Announces 13,000 Job Cuts
By TOM KRISHER, AP Business Writer
39 minutes ago
AUBURN HILLS, Mich. - In the next three years, 13,000 Chrysler workers will lose their jobs under a wrenching restructuring announced Wednesday that eventually may lead to a DaimlerChrysler divorce.
The Chrysler unit of the German-American automaker announced its long-awaited plan at its Auburn Hills headquarters, saying it would cut 16 percent of the U.S. division's work force, a move it hoped would return its U.S. operations to profitability by next year.
The plan was announced only hours after Chrysler's parent, DaimlerChrysler AG, said it was considering "far-reaching strategic options with partners" and that "no option is being excluded" as it reported a 40 percent drop in companywide profit for the fourth quarter.
The plan calls for closing the company's Newark, Del., assembly plant, and reducing shifts at plants in Warren, Mich., and St. Louis. A parts distribution center near Cleveland also will be closed.
Under the plan, 11,000 production workers _ 9,000 in the U.S. and 2,000 in Canada _ will lose their jobs over the next three years, and 2,000 salaried jobs also will be cut _ 1,000 this year and 1,000 in 2008.
The job losses are the latest in a yearlong series of devastating cuts in the ailing domestic auto industry, which likely will lose more than 100,000 jobs in all.
"We believe that this represents a solid plan to return to profitability and lay the groundwork for a solid future," Chrysler CEO Tom LaSorda said at a news conference.
DaimlerChrysler Chairman Dieter Zetsche said the company was looking into "further strategic options with partners" for Chrysler.
"In this regard we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler," Zetsche said in a statement.
Analyst Georg Stuerzer with UniCredit, when asked if the wording in the statement was a sign that the company was mulling a spinoff of Chrysler, said, "the impression was right. This is what people are thinking it could mean."
He added that the restructuring could be the first step, likely followed by a push by DaimlerChrysler to find a partner with which to operate the Chrysler unit, or even find a suitable buyer for it.
Bank of America auto analyst Ron Tadross said in a note to investors that DaimlerChrysler "did not rule out disposing of its money-losing Chrysler division."
Tadross said he "would not be surprised if there is good interest in Chrysler. We see Chrysler as a decent business, at least relative to the other U.S. domestic manufacturers."
DaimlerChrysler said Wednesday that its fourth-quarter earnings plunged on weaker demand at the Chrysler unit, where sales fell 7 percent. DaimlerChrysler's profit fell to $761 million, or 74 cents per share, as revenue slipped to $53.7 billion. The Chrysler unit lost about $162.8 million in the fourth quarter.
The job cuts at Chrysler will reduce by 400,000 the number of vehicles that operations can produce each year.
The Delaware plant, which makes the slow-selling Dodge Durango and Chrysler Aspen mid-sized sport utility vehicles, employs about 2,100 workers. Chrysler plans to close it in 2009, with a shift reduction this year.
Dean Almuwalld, who works in painting on the Newark plant's assembly line and has worked at the plant for 13 years, learned its future from news reports.
"I'll take a transfer," the 33-year-old said as he walked into the local United Auto Workers hall. Almuwalld said he has relatives in Detroit. "I've got family there, so I'm ready to go."
The Warren truck plant, with 3,313 hourly employees, makes the Dodge Ram and Dakota pickups, which saw sales decline last year. Chrysler plans to eliminate a shift there this year.
The other plant to lose a shift is the St. Louis South assembly plant, which makes Chrysler and Dodge minivans. It has 2,850 workers and would lose the shift in 2008.
The Cleveland-area parts distribution center would be close sometime this year, Chrysler said.
DaimlerChrysler shares rose $2.70, or 4.2 percent, to $67.15 in morning trading on the New York Stock Exchange.
02-15-2007, 02:50 PM
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Some of the weirder scuttlebutt arising from this Chrysler situation is the following. Dieter Zietche ("Dr. Z"), the DC chairman, apparently made some sort of remark in relation to making some kind of agreement with General Motors involving Chrysler. USA TODAY says he proposed a strategic alliance, like Nissan/Renault tried to get last year.
Word on the street is, it wasn't a strategic alliance Dr. Z wants ... he wants to SELL CHRYSLER TO GENERAL MOTORS.
Word on the street is, it wasn't a strategic alliance Dr. Z wants ... he wants to SELL CHRYSLER TO GENERAL MOTORS.
02-15-2007, 05:07 PM
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St Louis had a Chrysler, Ford, and GM plant at one time. I knew people who drove 100 miles one way to work at one of these plants. These cutbacks will have a significant impact on that area's economy. Of course, I guess Detroit is in even worse shape.
While I've believed for a long time that the auto worker's union needed to make major concessions to their contract, I feel for the families who have lost their livelihood. I try to do my part and buy American any time I can.
While I've believed for a long time that the auto worker's union needed to make major concessions to their contract, I feel for the families who have lost their livelihood. I try to do my part and buy American any time I can.
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