Chrysler sees most planned job cuts by end of 2006
Reuters / July 3, 2006 - 12:00 pm AUTOMIVDETROIT -- Chrysler Group expects to have 70 percent of its planned executive job cuts completed by the end of this year, Chief Executive Tom LaSorda said in an interview with The Detroit News on Monday.
The executive job cuts at Chrysler are part of a plan announced in January by parent company DaimlerChrysler, which aims to cut worldwide costs by $1.8 billion per year and has announced plans to cut some 6,000 positions.
The plan means that Chrysler's executive ranks will be trimmed by 180 positions from 1,200 currently, LaSorda was quoted as telling the newspaper.
"We're doing a (headcount reduction) right now, 15 percent of executives for the next three years, with 70 percent of that by the end of the year," LaSorda told the newspaper.Chrysler representatives were not immediately available for comment.
LaSorda had said earlier this year that the white-collar job cuts would be achieved through attrition, buyouts and early retirement offers.
The job cuts at Chrysler come as the automaker, which will report June sales on Monday, struggles with slower sales and high inventory levels in the first half of this year.As of the end of May, Chrysler had a 77-day supply of unsold cars and trucks. The company has also been the most aggressive of the Detroit-based automakers in offering sales incentives and discounts.Chrysler rolled out an employee pricing offer this weekend, combined with zero percent financing.Auto industry tracking firm Edmunds.com on Monday estimated that before that offer took effect Chrysler was already spending $3,768 on incentives per vehicle sold in June, more than Ford Motor Co. and General Motors.
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