Detroit, Warren DCX plants to lay off 6,000

KATIE MERX | FREE PRESS BUSINESS WRITER - -Nearly 6,000 UAW members who work at Chrysler Group plants in metro Detroit will be laid off temporarily.

Nearly 2,800 workers at Chrysler's Jefferson North Assembly Plant in Detroit will be laid off for at least four weeks beginning Saturday.

Union workers from the plant that manufactures the Jeep Grand Cherokee and Jeep Commander received layoff notices Thursday. The layoff will last at least through Oct. 19.

A Chrysler Group employee familiar with the layoff plans confirmed that work at the plant would stop after today for at least four weeks. Whether it lasts longer would depend on whether there is demand for more of the Jeeps made at the Conner Avenue plant.

The Chrysler employee also confirmed worker reports that all of the approximately 3,172 workers at Warren Truck on Mound Road would be laid off for two weeks. The Warren plant manufactures several variations of the Dodge Ram 1500, Dodge Dakota and Mitsubishi Raider.

Through unemployment pay from the government and wages and benefits from the company, laid-off UAW members are paid about 95% of their take-home pay, before taxes.

The layoffs come when Chrysler Group is cutting production of its profitable pickups and SUVs in hopes of avoiding the kind of sweeping restructuring under way at Ford and General Motors.

All three automakers have announced plans to cut production of large vehicles in the second half of the year as high gas prices drive customers to smaller, fuel-efficient -- but less-profitable -- cars.

The automaker told workers in August that it would cut more than 300 jobs at the 780-person Mack Avenue Engine 1 plant in Detroit and 70 jobs at Mack Avenue Engine 2 beginning in January, when it eliminates a shift.

Chrysler executives have said they are optimistic that a batch of new models coming late this year will help the division of DaimlerChrysler AG finish the year profitably and with an increase in market share.