DaimlerChrysler Plans to Cut 10,000 Jobs, Close Plants

From the AP:

Associated Press said:

DaimlerChrysler Plans to Cut 10,000 Jobs, Close Plants

AUBURN HILLS, Mich. (AP) -- 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've 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. DaimlerChrysler's U.S. shares fell 49 cents to close at $62.49 on the New York Stock Exchange.

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That's going to be one heck of a Valentine! Bummer!

I'm not surprised that Newark will close - sales of the Durango are low (at 13mpg that's a surprise) and even when they stick a Chrysler Aspen badge on it people don't want them. Then there's the added costs of shipping parts to DE. I never did understand that rationale......

It must be a difficult one for the Germans to swallow - sharing platforms. They always said it would debase the brand to put Chrysler parts on their 'premium' vehicles...............

And, as I've posted before, it's not like they didn't know this since about 1995

Andy

Last week, Pfizer announced job cuts for 10,000 people and this week its from Daimler Chrysler.

Too bad

After reading the news thread, this is what I came across later:

"Mercedes-Benz debuted the stunningly elegant and thoroughly modern Concept Ocean Drive, an ultra-luxury four-door convertible, a model which has essentially disappeared from the marketplace. The debut was held on a full ice skating rink that Mercedes-Benz created in Cobo Hall to celebrate 100 years of all-wheel-drive vehicles from Mercedes.
Today Mercedes offers one of the most complete lines of all-wheel-drive vehicles of any manufacturer and each model line was featured driving on the ice, including the new S-Class 4MATIC and the new E-Class 4MATIC, along with hockey players, figure skaters and even a dogsled. The S-Class 4MATIC features the fourth-generation 4MATIC for the first time.
"When we first discussed the Mercedes-Benz presentation for this year's Detroit auto show, I challenged my team to come up with a spectacular, fresh and all-new design concept for Mercedes. We set out to create a car that shows our brand's appreciation to our fans and customers. We thought of building a car to dream of―a car that could make the Mercedes star dance with the stars. . ." explained Dr. Dieter Zetsche, chairman of the Board of Management DaimlerChrysler and head of Mercedes Car Group."

Looking at the Pictures of the Car, I am certain, that I am not one of the Customers they are talking about. I would not be able to afford a car like this, and as Dr. Dieter Zetsche said: building a car to dream of. Well most of us will be dreaming about it.
I think Dr. Dieter Zetsche needs to get a reality check and come back from his dream state. And it seems to me that his Mercedes customer base is based mostly in Germany, and I doubt that a regular joe there is able to afford it. And based on the News of plant closings, this is certainly not a way to regain a Customer base that is concerned with gas mileage, price and endurance. Am I wrong or what?