Chrysler's collective wheels area spinning, but at what speed and in what direction is open to interpretation.
The automaker said Thursday it will cut 12,000 jobs, or up to 15 percent of its work force, with hopes of reducing expenditures and because of the declining demand for some of its vehicles.
Chrysler also said it will discontinue the production of four vehicles: Dodge Magnum, PT Cruiser convertible, Pacific and Crossfire convertible.
The automaker will cut 8,500 to 10,000 hourly jobs through 2008 and salaried employment by about 2,100. It will eliminate shifts at five North American assembly plants and eliminate four products from its lineup.
The cuts come on top of thousands of salaried job cuts that began Wednesday. Chrysler spokesman Mike Aberlich said about one-third of the company's temporary workers will be laid off in the next few months along with other salaried workers.
The cuts come in addition to the 13,000 layoffs Chrysler announced in February as part of a huge restructuring plan. Those cuts included 11,000 production jobs and 2,000 salaried jobs. The new round of cuts was expected to involve buyouts or early retirement packages similar to those made in February.
The announcement comes just days after the United Auto Workers union ratified a four-year deal with the automaker. Chrysler became a private company in August when Germany's Daimler AG (Charts) sold 80.1 percent of Chrysler to the private equity firm Cerberus Capital Management LP. Chrysler's new chief executive Bob Nardelli has said the
Chrysler will continue its plans with other pending vehicles: Journey, Challenger and two hybrid SUVs, the Aspen and Dodge Durango.
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