Chrysler Formally announces Plant and Model Changes; 4 models cut in 2008

[Buick61]

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

Auburn Hills, Mich., Nov 1, 2007 -

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.”

http://media.chrysler.com/newsrelease.do?id=7414&mid=1

[TaHoE]

It's a shame about the Magnum. They just re-did the nose and it looks great! I won't miss the others though.

[SirRaven]

Im suprised that they are dropping the Magnum and the Crossfire. I always thought they were good looking cars. The other two make since why they are dropping them, the PT Cuiser Convert looks horrible, and they have enough cars similar to the Pacifica. I hope it turns out for the best for them.

[DU Biggs]

It seems odd that Chrysler will be leaving a segment they helped create (large crossovers) and invest in a dead segment like large SUVs

[igor]

Originally Posted by TaHoE

It's a shame about the Magnum. They just re-did the nose and it looks great! I won't miss the others though.

agreed - I wonder whether they will kill the 300 Touring in other markets, or just kll the US Magnum version ..

Igor

[lio45]

Originally Posted by Buick61

Wow.

Those SRT-8s with the nicer '08 front end are just gorgeous. As several people have said already (in other threads), that's probably a future collectible. Not even going to run a full model year, is it?

[BusyBody]

I never liked the Magnum so I won't be sorry to see it go.

[JVal14]

Originally Posted by TaHoE

It's a shame about the Magnum. They just re-did the nose and it looks great! I won't miss the others though.

That is too bad about the Magnum, I guess it couldn't compete with it's own siblings. I've always been a little surprised about the rush to cut the Pacifica; I would think the success of crossovers would push Chrysler to redesign it rather than eliminate it. Maybe that will come in the future under a different name. The Crossfire makes since, especially since it is derived from the old SLK; but again, a redesign would have been nice, especially if it were based on that concept car they had a few years ago. What was it called? Firepower or something?

I'm surprised they cut some of these rather than some others. They're keeping both of the small Jeeps and the Nitro? Does this mean they're keeping the Commander? And they didn't say anything about making that Dodge roadster so I assume they're not going to do it.

[Gt5oh]

I was told by the Chrysler dealer near me that the Crossfire was discontinued after 2006MY and the 06 was a short run that was available only to employees. So really they were saying the 2005MY was the last available to the public. Since I hadn't seen any on their lot or other Chrysler lots since 06 except in the used lot I assumed this was correct. Any Chrysler insiders know? I liked the hatchback model but the car was just too tiny inside for me (6ft tall).

Im sad to see the Magnum get the axe though, I liked the restyle of the front end. I guess they are making room for Challenger production (and hopefully the Chrysler`Cuda, though I wish theyd use the Plymouth name for this niche product since they still own it. )

I could care less about the PT drop top or Pacifica.

[Cassie]

I'll actually miss the PT rag top, my friend has one and it's a sweet looking car. But I do agree the Magnum is the bigger loss, I felt it was a unique product...but if it isn't doing the numbers I don't blame them for dropping it.

[jwrebholz]

Originally Posted by SirRaven

Im suprised that they are dropping the Magnum and the Crossfire. I always thought they were good looking cars. The other two make since why they are dropping them, the PT Cuiser Convert looks horrible, and they have enough cars similar to the Pacifica. I hope it turns out for the best for them.

They don't sell. They're piling up on dealer lots--Chrysler can't hardly GIVE them away.

(Note to Chrysler--if you're having that much trouble getting rid of Magnums, I'll gladly take one off your hands--a red R/T if you don't mind)

[bobojay]

Last I read somewhere they had a 500 day supply of Crossfires on lots.
Guess they couldn't sell the 2 generation old Mercedes huh?

[SimonDavid]

Well I guess the Crossfire and the Pacifica have too much Mercedes content

I dont understand the Magnum cut though

[GMCSonoma]

By DEE-ANN DURBIN, AP Auto Writer 27 minutes ago


DETROIT - Chrysler LLC said Thursday it plans to cut up to 12,000 jobs, or up to 15 percent of its workforce, as part of an effort to slash costs and match slowing demand for some vehicles.
The automaker will cut 8,500 to 10,000 hourly jobs and 2,100 salaried jobs through 2008. The company already had begun cutting 1,100 temporary workers Wednesday. It will eliminate shifts at five North American assembly plants and cut four vehicle models from its lineup.

article continues here

[GM_Guy81]

I didn't even know they were still making the Missfire. I haven't seen one in ages.