DaimlerChrysler warns of N. American layoffs

[GMCSonoma]

DaimlerChrysler warns of N. American layoffs

By Kevin Krolicki Mon Dec 11, 2:20 PM ET


DETROIT (Reuters) - DaimlerChrysler AG (DCXGn.DE) could lay off up to 16 percent of the workers in its North American truck operations next year due to an expected downturn in demand, the head of the automaker's truck operations said on Monday.

Andreas Renschler, a member of DaimlerChrysler's board of management, also said Chrysler Group's Chief Executive Tom LaSorda has the board's backing, as the company's U.S. unit readies a turnaround plan intended to address swollen inventories and a drop in sales of almost 8 percent this year.


Article continues at link: http://news.yahoo.com/s/nm/20061211/...lerchrysler_dc

[civilzues]

laying off 16%? AND OVERTIME- umm I am no expert but this ain't right, lol

[1931Chevy]

This must be the reason they are building cars overtime

[1931Chevy]

DaimlerChrysler, the world's largest commercial truck maker, employs a total of about 25,300 in its truck operations in the United States, Canada and Mexico.

DaimlerChrysler's already announced 800 truck division layoffs will take place at Freightliner's St. Thomas, Ontario assembly plant, which had almost 2,200 workers as of end 2005.

[ScottS]

Someday someone up the DCX food chain is going to have to write a memoir about this time in Chrysler history to explain what on God's green earth they were doing. I mean seriously, a "turnaround plan to address swollen inventories?" A third grader could figure out that solution, so someone must have something bigger in mind.

[mbukukanyau]

UAW is surely on its death bed, DCX is in worse shape than ford, and ford is really in bad shape. GM is moving most of its manufacturing overseas... Things do not look good for UAW

[paul38469]

I can tell you exactly what they've been up to. Since last year they have been building more vehicles than orders they have received because they book sales when the vehicles go to the dealers, not when they are actually sold. So, they build up a huge inventory, try to force it on the dealers, book the sale and bump up their sales and revenue numbers. This is in part why Chrysler seemed to be doing so much better than GM and Ford last year. This year it is catching up to them because they still have a lot of 2006 vehicles (and even some 2005 models) in inventory, not to mention all the 2007s. I assume the big overtime push right now has been to bump up their numbers for the full year. But this can't continue indefinitely. The s--t is about to hit the fan and there will be huge layoffs and brutal losses for the Q1 2007 now that they have realized they can't keep building cars and trucks no one wants.

Originally Posted by ScottS

Someday someone up the DCX food chain is going to have to write a memoir about this time in Chrysler history to explain what on God's green earth they were doing. I mean seriously, a "turnaround plan to address swollen inventories?" A third grader could figure out that solution, so someone must have something bigger in mind.

[Havasavana]

Originally Posted by 1931Chevy

DaimlerChrysler, the world's largest commercial truck maker, employs a total of about 25,300 in its truck operations in the United States, Canada and Mexico.

DaimlerChrysler's already announced 800 truck division layoffs will take place at Freightliner's St. Thomas, Ontario assembly plant, which had almost 2,200 workers as of end 2005.

This is confusing. LaSorda has what to do with Freightliner? Nothing as far as I know. I've read for a while that sales of semi tractors have boomed this year due to tighter emission rules that will be in force next year, so operators are buying now to avoid those rules. I guess they're saying that sales of Dodge pickups and the bigger stuff is expected to be down next year. I doubt this is just a DCX story.

[jbartley]

ridiculous. it's as if they want to hemmorage money til the company implodes....

[lio45]

Originally Posted by jbartley

ridiculous. it's as if they want to hemmorage money til the company implodes....

Layoffs are ridiculous?

Better also tell GM and Ford...

[1931Chevy]

Chrysler has been able to keep build because even with the Chrysler brand loss Daimler Chrysler as a whole is making profits of about 5 billion this year, Freightliner is making a profit of almost 800million this year, MB is making a profit of about 3.5 to 4 billion, I think thats why the UAW dont plan to give Chrysler the same concessions as they gave to Ford or GM

[01cavalier]

Wow, are they going to keep building at the same rate?

[dmaxpwr]

is everyone reading the full article??

"Despite a projected drop of almost 40 percent in industry-wide demand for heavy trucks next year in North America, Renschler also said he expects the company's U.S.-based Freightliner truck division to remain profitable."

[PocoToro]

Chrysler is turning into a soap opera. This is getting better than "Days of Our Lives" and it's just getting started. I can't wait until it all hits the fan. So grab a cold one and take a seat and watch DCX implode.

Didn't I read recently that DCX is buying Proton, the Malaysian company that can't make a profit without the government telling the people "this is all you can buy, we wont let imports in the country" ?????????????


EDIT DCX is buying Foton in China. It still does not make money.

[redimpss5]

Not every one wants a new $45k truck every 2 years. Plus since they last so long now, why sell a vehicle that will last 10 years!