An Emotional Day for Chrysler's in Warren

Daimler Chrysler AG announced plans Wednesday morning to cut 13,000 jobs at the Chrysler Group from 2007 to 2009 as part of a three year plan to return the Auburn Hills unit to profitability by next year. In Michigan, a shift will be eliminated this year at the Warren Truck Plant, which makes the Ram full size pick-up and Dakota Compaq pick-up.

The job reductions which amount to about 16% of the Chrysler Group work force calls for 2,000 salaried employees and 11,000 hour jobs, 9,000 in the US and 2,000 in Canada. The Newark, Delaware. Assembly Plant will be idled by 2009 and the Cleveland Ohio Parts Distribution Center will be idled in December 2007. In 2007 shift will be eliminated at the Newark Assembly Plant. The news hits workers hard.

At this time a year ago, the Chrysler Group was posting profits and increasing US Market Share, but in the past year, the Chrysler Group has had to deal with mounting inventories amid slumping sales. Executives hope for a $4.5 billion financial improvement by 2009 to an operating profit of 3 billion. The Chrysler Team worked out a comprehensive Recovery and Transformation Plan using all resources within Daimler Chrysler.

Also this year the Cleveland Parts Distribution Center will be idled in December. Next year the company plans to eliminate a shift at the St. Louis Assembly Plant. The plan is expected to cost Chrysler $1.3 billion including 1 billion in cash this year. Reduced production in order to get inventory in the live with demand, is expected to cost the company about $300 million as well.

These are livelihoods people depend upon to raise their families and pay their bills. "Everything is going out of the state and country," according to an employee, people are upset and cried when they heard the news.

Sources:The Detroit Free Press