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Kenosha plant escapes Chrysler's cuts
Published February 14, 2007 - BizTimes Daily
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The 850 employees at the Chrysler Group's Kenosha engine plant will not be affected by the company's aggressive new plan to change its business model, cut its costs and eliminate 13,000 jobs.
Company spokesman David Elshoff will be spared from the job cuts by the Chrysler Group, which also plans to make a $3 billion investment in its power train program. That investment will include new facilities to build engines, transmissions and axles, he said.
A site to build the new power train systems has not yet been selected. That announcement will be made soon, but Elshoff declined to elaborate.
DaimlerChrysler AG's Chrysler Group today announced a three-year "recovery and transformation plan" that is designed to return the company to profitability by 2008.
The company also is taking steps to change its business model for the long run.
Chrysler will idle plants in Cleveland, Ohio, and Newark, Del., and cut shifts at plants in Warren, Mich., and St. Louis, Mo.
Chrysler Group president and chief executive officer Tom LaSorda outlined the plan at the DaimlerChrysler AG annual press conference this morning in Auburn Hills, Mich.
Dieter Zetsche, chairman of the board of management of DaimlerChrysler, said, "The Chrysler team worked out a comprehensive recovery and transformation plan using all resources within DaimlerChrysler. In addition to that and in order to optimize and accelerate the presented plan, we are looking into further strategic options with partners beyond the business cooperation partners mentioned. In this regard, we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler."
The plan's primary focus on costs, but the company also will make a $3 billion investment in new engines, transmissions and axles, setting the stage for Chrysler to launch a line of more than 20 all-new and 13 refreshed vehicle models from 2007 to 2009.
"There are two integrated parts to the plan," LaSorda said. "First, the Chrysler Group needs to solidify its position in the North American marketplace. In addition, the key to our long-term success will be our ability to transform the organization into a different company to achieve and sustain long-term profitability."
