The Private Equity Way: Cut - Cut - Cut
From the article: “Chrysler LLC is expected to slash at least 1,000 salaried workers, cut contract employees and trim manufacturing jobs in an effort to downsize payroll and production to match its shrinking U.S. market share.
People close to the company said Chrysler’s board Tuesday approved the job cuts and possible factory shift reductions in addition to dropping four vehicles from its product lineup.
The cuts are expected to be announced as soon as today as the newly independent automaker revamps its operations under the ownership of the private-equity firm Cerberus Capital Management. ”
Anyone care to speculate what the fourth vehicle will be? Will the Aspen join the PT, Pacifica, and Magnum?
Chrysler to cut deeper: 1,000 managers targeted - detnews.com
October 31st, 2007 at 9:42 am
Probably, and hopefully, the Compass.
October 31st, 2007 at 10:21 am
Cutting a 1,000 employees sounds like Chrysler is trying to back in to profits.
As a California dealer Chrysler already does not have enough field support for the dealer body. I don’t know how we are going to implement “Customer First” when there is going to be nobody available to answer the phone.
Or maybe Chrysler is going to do the American corporate standard operating procedure and outsource these jobs over seas.
I guess we will now get to see if Cerberus-Chrysler is really the American car company that they have made out to be.
October 31st, 2007 at 11:45 am
The fourth vehicle is named in the article, Crossfire.
On the second line of the opening sentence notice the phrase “trim manufacturing job”. That is the explanation it seems to me for killing PT Cruiser at Toluca. Loss of manufacturing jobs in Mexico does not bring down the wrath of the UAW.. Rich, count on Jim Press and the woman in sales that came aboard earlier from Toyota to come to the rescue of the dealers on field support. These cuts in production and the dismissal of contract, white collar and Toluca production workers should provide more than enough slack to beef-up things on the sales front. The dealer council has got to take that message to Auburn Hills. What are you talking about, maybe 35-75 more people all over the country as field men and to answer the phone?
November 1st, 2007 at 3:50 pm
Cut cut cut cut cut cut cut cut cut.
So when exactly did trying to grow a domestic automaker get too much of a hassle? GM and Ford have cash trouble, but Chrysler is backed by Cerebus, who have miles-deep pockets to fund new and better products. They should be fueling their corporate restructuring with fresh, new and exciting product, NOT CUTS.
November 1st, 2007 at 8:01 pm
Rob Cerberus has deep pockets but they are not stupid.
It takes years to get new products my friend. Until then you have to cut, cut, cut (as you say)
Why shoud they spend when they can cut overlapping products and “me-too” models?
Cut first, then spend.
It will hurt a lot more before it will get better.