Chrysler Group announces 13,000 job cuts
DaimlerChrysler AG’s Chrysler Group today announced a three-year Recovery and Transformation Plan that seeks a return to profitability by 2008 while also taking steps to change its business model for the long run. The plan will result in an employee reduction of 13,000 people from 2007 to 2009. Chrysler Group President and CEO Tom LaSorda outlined the plan at the DaimlerChrysler AG Annual Press Conference, held in Auburn Hills, Michigan.
Overall, the Recovery and Transformation Plan is aimed at a return to profitability with a primary focus on costs. It is structured to over-achieve in order to offset potential unforeseen market headwinds, resulting in a target of €3.5 billion ($4.5 billion) of financial improvements – or a return on sales of 2.5 percent – by 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.”
The program will be supported by a €2.3 billion ($3 billion) investment in new engines, transmissions and axles, which will set the table for a product offensive of more than 20 all-new and 13 refreshed vehicles from 2007 to 2009.
Source: Chrysler Group
