[NL]BUZZ WATCH[NL]CHRYSLER WORKFORCE CUTS[NL]WHY?[PARA][PARA]Warning: This
column is often based on rumors and information derived from unsubstantiated
sources. Note: Any publication that reports on the copyrighted contents of
this column without giving proper credit to www.car-truck.com as its source
may be prosecuted for copyright infringement[PARA][PARA]The must read
article of the day is Jeffrey Ball's "New Chrysler boss plans to cut jobs,
squeeze suppliers" in Monday's Wall Street Journal (top link on the Links
page). The most disturbing part of this well researched piece is the
prediction of major workforce cuts at Chrysler.[PARA]Balls' sources tell him
that the Zetsche restructuring plan will cut "6,000 of Chrysler's 30,000
white-collar jobs . . . along with 10,000 to 15,000 of its 95,000
manufacturing workers and about six of its 41 plants."[PARA]He adds that "To
comply with Chrysler's union contracts, the bulk of the staff cuts could
come through attrition and early-retirement buyouts rather than layoffs."
And that "Some of the factory shutdowns could be billed as indefinite
"idlings" rather than formal closures."[PARA]While it's a fact that Chrysler
lost some money this past year, I can't help thinking that this hole
"crisis" is a convenient way for Daimler to dramatically trim Chrysler's
workforce. When the reality is that Chrysler is already over the hump.
[PARA]2000 was an unprecedented year for Chrysler. With four product lines
being replaced almost simultaneously (minivan, mid-sedan, coupes and
convertible) for the 2001 model year. Dealers were saddled with nine lame
duck models (Cirrus, Stratus, Breeze, Town & Country, Caravan, Voyager,
Avenger, Sebring and Sebring convertible). [PARA]Final year models never
sell well. But despite that fact Chrysler's dealers sold more than three
million vehicles, which is 200,000 units shy of 1999 (which was a record
setting year for auto sales). Pretty darn good if you ask me! But when you
combine slightly slower sales with the huge costs involved in tooling up and
introducing new models, there's just no way that Chrysler could have made
money last year.[PARA]2001 on the other hand looks to be a great year. The
all-new minivans are first-rate and sales are beginning to take off. The
same goes for the new Sebring and Stratus sedans and coupes which are both
outstanding vehicles. Chrysler's new Sebring convertible is probably the
best looking convertible on earth, it's combination of world class styling
and reasonable price will continue Chrysler's domination of the convertible
market.[PARA]Public reaction to the Jeep Liberty is strong and the PT
Cruiser is still the hottest vehicle around. Judging from what the Buzz
Patrol tells me, the new Ram (which will be unveiled on February 7th in
Chicago) is also going to be a winner. [PARA]So why is the company in crisis
mode? Two reasons: One Stuttgart thinks aggressive cost cutting will impress
Wall Street analysts. Two cutting costs will raise short term profits. What
these folks seem to forget is they're not talking about "costs" but rather
peoples lives. [PARA]Chrysler's dedicated workforce is responsible for the
company's success in the past decade. They deserve better. Using them as
pawns to help boost the companies stock value is wrongheaded and bound to
fail. Mostly because it will show the remaining workforce that Stuttgart
thinks they're expendable.[PARA]Chrysler has always done more with less,
despite what you've read in several recent articles (including the WSJ
piece) this is still the case. Chrysler is still a lean mean fighting
machine. There's really no fat to trim. Instead they need to step back and
let the company take its own course (I'm not holding my breath).
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Steven St.Laurent
2000 Dakota Hemi 4.7 (WRECKED!!)
2000 Ford Roush Mustang Stage III - TT version (sold)
1999 Chebby (gone in 2003)
1993 Tracker (still going-going-going...)
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Aspiring for now:
2003 Dakota Hemi 5.7 or a V-10 mod
2003/4 Viper GTS-R
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