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BrianLaws
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applaud / smite
Location: Local 1268 BAP Grp 9 Team 5
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| Posted: Tue Jul 01, 2008 4:07 am Post subject: Chrysler to close 1 plant, cut production at 2nd |
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| Quote: |
By TOM KRISHER – 8 hours ago
DETROIT (AP) — The worsening U.S. auto sales slump hit Chrysler LLC again Monday as it announced plans to close one St. Louis-area factory and cut a shift from another because of declining demand for minivans and pickups.
Officials with the Auburn Hills-based automaker said in a conference call that it will shutter the St. Louis South plant, which makes minivans, effective Oct. 31. The St. Louis North plant, which makes full-size pickups, will be cut from two shifts to one effective Sept. 2.
The minivan plant's closure will cut 1,500 jobs, and it wasn't clear if the company would ever recall the 900 workers who will be laid off at the pickup truck plant. Both factories are in Fenton, a St. Louis suburb.
Chrysler President and Vice Chairman Tom LaSorda said the company has no plans to reopen the minivan plant. He said there's only enough minivan demand for three shifts, which the company already has running at its factory in Windsor, Ontario.
"We have too much capacity," he said, adding that the company had to reduce its factory capacity to remove fixed costs. "Those are the tough decisions we have to make, but that's the decision we did make."
LaSorda also denied rumors that Chrysler's owner, Cerberus Capital Management LP, planned to sell the company in pieces.
"Hogwash, absolutely not being considered at all," he said. "Absolutely no relevance. I don't even want to entertain those questions."
He would not say if workers at the pickup truck plant could be recalled, adding that the company never announces whether a shift cut is permanent "because that is something we cannot foresee."
The company will hold meetings with affected workers to review severance programs, LaSorda said. |
http://ap.google.com/article/ALeqM5if6HTCFwXC90erym0sBymE9FhfaAD91KNL881 |
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