Chrysler cutting up to 12,000 jobs, eliminating models
Roughly 1,100 jobs to be axed in Brampton
Last Updated: Thursday, November 1, 2007 | 9:53 PM ET
CBC News
Related
Internal Links
Video
- Ron Charles reports for CBC-TV (Runs: 2:42)
- Play: Real Media »
- Play: QuickTime »
Carmaker Chrysler LLC, which was recently taken private by Cerberus Capital Management, said Thursday it is cutting thousands of jobs and cancelling production of four vehicles.
The company will eliminate between 8,500 and 10,000 hourly jobs through 2008 and cut 2,100 salaried employees as it continues its struggle to cut costs.
The Dodge Magnum will be phased out in the first three months of 2008. (AP Photo/Chrysler Group)
Shifts at five North American assembly plants will be eliminated, including one at the firm's Brampton, Ont., factory.
The company is cutting the Chrysler Pacifica, which is made in Windsor, Ont., and the Dodge Magnum, which is assembled in Brampton.
About 1,100 jobs will be eliminated in Brampton in the first quarter of 2008, CAW president Buzz Hargrove said.
The exact impact in Windsor is still unknown, but Hargrove estimated that about 100 employees could be affected.
"This is just horrible, horrible news," Hargrove said during a news conference in Toronto.
The automaker is also axing the Crossfire and the PT Cruiser convertible through 2008, while it adds some new products, the Dodge Journey and Challenger plus hybrid versions of the Chrysler Aspen and Dodge Durango.
Through September, cumulative year-to-date U.S. sales of the Pacifica were off about 30 per cent, while Magnum sales were down about 32 per cent. Crossfire sales in the U.S. were up about 12 per cent.
Hargrove said he expects two Canadian suppliers — Innovatech, a Magna-owned plant, and Benteler Automotive — that produce parts exclusively for the Pacifica to shut down. Innovatech has about 100 CAW members, while Benteler has about 150 union members.
Market situation 'changed dramatically'
The latest round of cuts comes on top of the elimination of 11,000 hourly and 2,000 salaried jobs announced in February.
"The market situation has changed dramatically in the eight months since Chrysler established the recovery and transformation plan as its blueprint," chief executive Bob Nardelli said.
In addition to Brampton and Windsor, the productions cuts include:
- The third shift at a plant in Belvidere, Ill.
- The second shift at the Jefferson North plant in Detroit.
- The third shift at a plant in Toledo, Ohio.
- The second shift at a plant in Sterling Heights, Mich.
Daimler AG sold 80.1 per cent of the company to Cerberus Capital in the summer.
Share Tools
Top News Headlines
- Raitt closer to ending CP Rail strike
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Rail strike if necessary, after both CP Rail and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt tells CBC News she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Quebec tornadoes cause millions in damage
- Syrian regime denies role in Houla massacre
- Montreal protesters march in peaceful defiance
- Woman's remains found in hockey bag on Cape Breton river
- Remains found in bag on Cape Breton river ID'd
- Everest team unable to bring down Toronto woman's body
- WWE apologizes to Brazil over Canadian's flag stomp
The Dodge Magnum will be phased out in the first three months of 2008. (AP Photo/Chrysler Group)
