Chrysler cuts hit home - 2,300 workers will be off for the next 2 weeks

JOHN DEMPSEY | Tribune business writer - - The repercussions of DaimlerChrysler’s decision this week to cut deliveries to dealers by 90,000 for the third quarter are already starting to hit Kokomo.

Approximately 2,300 hourly and salaried employees of Chrysler Group’s Indiana Transmission Plant I and II will be off work for the next two weeks when the company shuts the plants down, according to Michelle Tinson, a Chrysler spokeswoman.

ITP I makes rear-wheel drive transmissions for Dodge Ram trucks and Jeeps while ITP II builds transmissions for large cars — such as the Chrysler 300 and Magnum and Dodge Charger — and Jeep vehicles.

Guy Barger, president of United Auto Workers Local 685, which represents hourly employees, was expecting Kokomo to be impacted by the cutbacks.

“We’ve experienced previous shutdowns at ITP I. I’m surprised about ITP II. It’s never been taken down for weeks there,” he said. “The products that that transmission [plant] supplies have been a big seller. Now, we’re seeing some downturn there, too.”

Kokomo Transmission Plant, which makes front- and rear-while drive transmissions as well as the heavy duty 48RE, will maintain its production schedule, according to both Tinson and Barger.

A bloated inventory resulted in DaimlerChrysler’s decision to scale back operations for the rest of the year. It plans to cut shipments in the second half of 2006 by 135,000 units.

Production of Dodge Durangos and Ram trucks are the primary sources for the 90,000 vehicle cutbacks, Chrysler has said. Tinson added that production cuts could be offset by new vehicle launches.

When the cuts were announced Tuesday, questions about Kokomo operations were left unanswered by the company.

Chrysler’s statement said “at this time, we are not able to quantify or evaluate how that will affect plant by plant sites. Naturally, reduction in components would occur and that includes engines and transmissions.”

Sources within the operations on the city’s north side said management informed salaried employees of the shutdown Wednesday.

The same sources also say that both plants could be shut down the week of Oct. 23 and ITP I may possibly be closed for two weeks at the beginning of December.

When asked about those possibilities, Tinson said that company policy only allowed her to discuss production plans for the next two weeks as changes in sales could change future plans.