2023 Author: Eric Donovan | [email protected]. Last modified: 2023-11-27 05:39
Closer links to the parent company and plant closings should bring Chrysler back into profitability. This is reported by a newspaper - citing a secret "Project X".
According to a report in "Detroit News", Chrysler is to be converted into a smaller and more efficient automaker with closer ties to the parent company DaimlerChrysler and the Mercedes-Benz auto division. According to the newspaper, this provides for "Project X", a secret restructuring plan.
More common platforms wanted
At least 10,000 workers and an undisclosed number of employees are likely to lose their jobs. The car plant in Newark (US state Delaware) and an engine plant in Detroit are to be closed. In the future, vehicle architectures and auto parts are to be used jointly at Chrysler and Mercedes. Chrysler and Mercedes are to cooperate on the next generation of smaller cars to be built in Germany and the United States.
The platform with the code name W164 should be used both for the next M-Class and for future versions of the Jeep Grand Cherokee and Dodge Durango SUVs. More parts are also to be bought together and more auto parts are to be obtained from low-wage countries in Asia. The plan should be announced on February 14th.
Chrysler posted an operating loss of $ 1.5 billion in the third quarter of last year. Chrysler suffered from increased competition from Toyota and other suppliers in the Far East as well as from declining sales figures for its SUVs and pickups. Huge piles of new cars could only be reduced with the help of costly discount campaigns and other sales aids. In view of the high gasoline prices, Americans are increasingly switching to smaller SUVs and more economical cars. Chrysler, Ford and General Motors suffer particularly from this. (dpa)
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