The transmission plant in Toluca, Mexico and assembly plant in Cordoba, Argentina will close this year. In 2002, the engine plant in Toluca will close. Meanwhile, the Campo Largo assembly plant in Parana, Brazil will discontinue production while the company evaluates whether to continue production in the future.
Locally, the Jefferson North plant here will eliminate one shift, as will the Pillette Road plant in Windsor, Ontario. Shifts also will be eliminated in Belvidere, IL, the Toledo, OH assembly plant and Bramalea, Ontario. Meanwhile, the Newark, DE assembly plant will reduce line speed, as will the Windsor assembly plant.
Next year, engine production will be shifted from the Mound Road plant here to the Mack I and Mack II plants, also in the city. In Mexico, the Lago Alberto assembly plant will shift production to the Saltillo assembly plant.
Chrysler Group President and Chief Executive Officer Dieter Zetsche says the cuts are absolutely necessary for the company to survive. "Chrysler must become a nimble company, these actions have to be taken. The automotive markets are deteriorating, and company performance is also. Today is our turning point. This reduction will seriously promote our rebuilding efforts," Zetsche said.
The 20% reduction over the next three years will be approximately the same percentage for both salaried and hourly employees. This will affect about 19,000 hourly and 6,800 salaried personnel through a combination of retirements, special programs, layoffs and attrition. It is expected that 75% of the layoffs will come in 2001. The number of layoffs will depend on participation rates in retirement programs.
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