Sebastian Blanco
Filed under: Manufacturing/Plants, Chrysler

Up to 11,000 more jobs will be cut at Chrysler, the company announced today. That's the headline that's everywhere, and deservedly so. The subhead is that four products will be discontinued and "two all-new products and two hybrid models" will be added.

The vehicles that are disappearing include the Dodge Magnum, the convertible version of the Chrysler PT Cruiser, the Chrysler Pacifica and the Chrysler Crossfire. The new products are the Dodge Journey and the Dodge Challenge, the Chrysler Aspen hybrid and the Dodge Durango hybrid.

Automotive News (subs req'd) says that Chrysler's UAW workers feel blindsided by this announcement. Four days ago, the UAW approved a new contract with Chrysler.

Full press release from Chrysler after the jump.

[Source: Chrysler]

Chrysler today issued the following news release:

Chrysler Announces New Plans to Balance Supply and Demand

• Chrysler Announces Product and Plant Changes
• Industry-wide volume reduction and sales slow down requires plant adjustments
• Four products will 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, will 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 reduce 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 remain the same.

"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," 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 lower and carry over into 2008."

"We have to move now to adjust the way our company looks and acts to reflect a smaller market," added Tom LaSorda, Vice Chairman and President. "That means a cost base that is right-sized and an appropriate level of plant utilization."

LaSorda added that third-shift operations at assembly plants usually reflect a high demand 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 company 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 frame, Chrysler will add two all-new products to its portfolio: the Dodge Journey and Dodge 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 focus our resources on new, more profitable and appealing products," added Jim Press, Vice Chairman 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 further volume-related actions at several other facilities. It will:

Drop third-shift operations at Belvidere (Ill.) Assembly Plant in the first quarter 2008. Belvidere builds the Dodge Caliber, Jeep Patriot and Jeep Compass.

Drop second-shift operations at its Jefferson North (Detroit, Mich.) Assembly Plant in the first quarter 2008. It's expected that the plant will return to two shifts in first quarter 2010 with the introduction of the next generation of sport-utility vehicles. The addition of a third shift will remain an option, depending on market demand. Jefferson North builds the Jeep® Grand Cherokee and Jeep Commander.

Drop third-shift operations at the Toledo (Ohio) North Assembly Plant in the first quarter 2008. Toledo North builds the Jeep Liberty and Dodge Nitro.

Drop third-shift operations at Brampton (Ontario) Assembly Plant in first quarter 2008. Brampton will build the Chrysler 300, Dodge Charger and Dodge Challenger. The Dodge Magnum will be discontinued.

Drop second shift operations at Sterling Heights (Mich.) Assembly Plant in first quarter 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 quarter 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 have the right team in place and a business plan 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 step ahead of market change. And that is the way to long-term sustained profitability."


Source: 11,000 fewer jobs, two new hybrids at Chrysler

The trade group representing automotive importers has said it will not fight a combined 35 mile per gallon fuel economy standard being considered by the U.S. Congress, but its members want more time to meet the stiffer standard.

The Association of International Automobile Manufacturers wants the deadline for meeting the tougher standards pushed significantly back from the proposed 2020 timeline. The lobbyist group represents more than a dozen import nameplates, including Toyota, which had sided with Detroit automakers in seeking lesser standards that separate car and truck ratings. The only AIAM members that sell large trucks are Toyota and Nissan.

Source: Importers Agreeable to 35 mpg Standard

Now here’s a Scion xD that I wouldn’t actually mind seeing parked in my garage –well, if I had a garage, that is. The widebody kit is beautifully integrated to the xD which is painted in a vigorous Papaya Orange color. The kit is complemented by 20-inch alloy wheels in 245/30 R20 Yokohama rubber up front and 295/25 R20 in the rear.

As you can see in the detailed list after the jump, Scion’s SEMA-fied xD is filled with aftermarket components and accessories like the suspension and brake kits, Sparco racing seats and DVD player. Disappointingly, the supped Scion xD doesn’t feature any engines mods whatsoever. Too bad, we were just starting to like it. -Details and pics after the jump

FIVE AXIS DESIGN - SCION xD WIDEBODY

01 EXTERIOR

• Five Axis Design 6” Widebody

• Papaya Orange paint

02 ENGINE

• No modifications

03 EXHAUST

• Five Axis Unique Finishers

04 WHEELS

• FIVE:AD R6:F_SPEC

F: 20 x 8.5, +0

R: 20 x 10.5, +20

Satin aluminum finish

05 TIRES

• Yokohama Advan Sport

F: 245/30 ZR20

R: 295/25 ZR20

06 SUSPENSION

• TEIN Super Street Damper

• TRD strut brace

07 BRAKES

• Stoptech Big Brake Upgrade

F: 355mm x 32mm, ST40 4-piston Caliper

R: 328mm x 28mm, ST22 2-piston Caliper

08 INTERIOR

• Five Axis Design Interior Appointments

• Sparco Faster steering wheel

• Sparco Litium shift knob

• Sparco Reflex racing pedals

• Upholstery by Salt Turin Upholstery

09 SEATS

• Sparco Sienna sport seats

10 ICE

• Pioneer AVIC D3 navigation head unit

• Monster Car Audio cables and wires

• Real-time video capture

• Four exterior LCD screens

11 GAMING FEATURE

• Five Axis Modified Smart Industries 6” Claw Vending Machine

• Five Axis Design Plush Souvenir Toy Car SWAG

Source: SEMA: Scion xD Widebody by Five Axis Design