Posted by MoparNorm on Friday, November 02, 2007 at 02:28:00 :
In Reply to: Re: Layoffs at Chrysler posted by Tim Holloway on Thursday, November 01, 2007 at 21:57:17 :
Awe Timmy, that wasn't nice or accurate. The new Brass are working for free this year. If you read the article you'll see that these layoffs are mainly 3rd shift jobs at plants that are building poor performing vehicles.
They announced this last month, even before the current negotiations started, saying that up to 11,000 jobs would be cut.
If you read the accompanying article at Allpar, it explains that many plants have been running 3 shifts, 24/7 on models that are not selling. That is why they have such ridiculously high inventories and need very high rebates to sell the vehicles.
By building only what they sell, they can cut their overhead while reducing incentives. Something they should have been doing for the last 5 years. Nardelli did note that the third shift would be re-instated if sales of the newly re-designed vehicles pick back up. Interest rates dropped yesterday so that might help sales also.
Sales were off by 9% last month, mainly at Jeep and Dodge Truck. Surprisingly, Dodge and Chrysler car sales are up markedly.
And the good news is that the PT is not being scraped, only the PT convertible.
Smart business decisions like this wil save the company and the remaining 138,000 jobs.
Do YOU keep a big crew sitting around on YOUR payroll, even when you have no work?....= )
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