Chrysler to close US plants, cut 13,000 jobs

14 February 2007

Mumbai: DaimlerChrysler has announced a plan to close all or part of four plants and eliminate 13,000 jobs in North America as part of a restructuring programme for Chrysler.

The restructuring plan was approved by the DaimlerChrysler supervisory board, which met at Chrysler's headquarters here.

DaimlerChrysler, which reported earnings of nearly $7.3 billion last year, despite a loss of nearly $1.5 billion for Chrysler, said it was leaving all options open for the future of its struggling Chrysler Group

Chrysler said it would close its Newark, Delaware assembly plant in 2009, as well as a parts distribution centre in Cleveland.

It also will eliminate one shift of workers at two truck plants in Warren, Michigan, and St. Louis.

In all, Chrysler said 13,000 employees, or 16 per cent of its work force, would lose their jobs by the end of 2008, including 11,000 hourly workers, it said.