Breaking News: Chrysler to cut 25% of white collar workforce
Beginning next month.. more info as it becomes available.
Update: General Motors has intensified talks to buy Chrysler’s auto operations from Cerberus Capital Management in a deal that would also involve a transfer of ownership of GMAC, people familiar with the talks said Friday.
GM is concerned about the risk for costly supplier failures in the event of a merger with Chrysler and intends to seek U.S. government aid to support any deal, according to the sources who were not authorized to discuss the private talks
October 24th, 2008 at 8:32 am
What GM management does not understand is Chrysler buyers will not buy if GM owns it. GM will most likely gut the Chrysler brands and expect us to buy their GM crap. Chrysler owners do not like GM products period. We will go to Ford or an import.
October 24th, 2008 at 9:09 am
Ditto to KM’s statement.
GM will keep Jeep and kill the rest. The only way they will survive is to eliminate competition.
I only hope the government doesn’t help them.
October 24th, 2008 at 11:02 am
This end is actually here for the chrysler group.
Goodluck in the real world you UAW boys and girls.Just imagine life without sub-pay and job-banks.You are actually going to have to work to make your money.
You dealers are on very big trouble too.
The end is HERE!
October 24th, 2008 at 11:13 am
Yes, i do believe Chrysler is finished. All UAW will be making $14.00 by next summer.
October 24th, 2008 at 1:35 pm
Not to pick nits about your UAW comments, but this layoff announcement affects salary, not hourly employees.
October 24th, 2008 at 2:10 pm
http://www.autonews.com/apps/pbcs.dll/article?AID=/20081024/ANA02/810249976/1078/emailblast02&refsect=emailblast02
“Chrysler to cut 25% of salaried workers” -AUTOMOTIVE NEWS
Hope you can access this story. They try to “lock” it, but since the world as we know it is coming to an end, I thought I’d try and pass it along.. Be sure and see Nardelli’s comments in the final paragraph… Yeah, there are locks on those garbage cans out there.. Nobody can get credit and so nobody can buy motor vehicles or houses or meet the payroll… What elese is new?
October 24th, 2008 at 5:31 pm
Why is it that everybody but the leaders of Corporate America and the United States Government understood that the out sourcing jobs to other countries would lead to the current financial collapse of the US Economy?
Our leaders in Washington have stood by as Corporate America and Wall Street dismantled and raped our industries: First steel, then textiles and now the automobile industry have been dismantled and the jobs shipped overseas.
The dominos have fallen and it will take several years of sound domestic policy and investment to rebuild our vital industries.
The problem is that we lack the leadership in this country to do what is necessary to protect our vital industries.
October 24th, 2008 at 7:09 pm
Amen brother! I hear ya!
October 24th, 2008 at 7:44 pm
Hello! The UAW boys should have been making between $10 and $14 per hour all along. Now it is too late. It’s an excellent case study in greed.
Actually there are two automobile industries here in America today. One is thriving and the other is declining. The big three need to move to the south and compete alongside with the asians - without the UAW!
October 24th, 2008 at 8:59 pm
Credit isn’t available to people who don’t deserve access to credit.
Example: Today I had a couple making $7,500.00 a month income. They had an out go of about $2,100.00 including their mortgage.
They are currently 30 days late three months in a row on their affordable mortgage of 950 a month.
How stupid is that, I had two credit unions who would have bought them if their mortgage was current.
Stupid is as stupid does and stupid people don’t derserve access to credit if you can’t pay your bills on time.
October 24th, 2008 at 9:18 pm
Rave on, brother, rave on. We had a similar experience recently. They got to keep their bills current.
October 25th, 2008 at 6:17 am
It’s all about the money and not the company.
The rape and pillage of Chrysler continues. First the Germans milk its coffers with “corporate overhead” transfer fees and overpriced parts from Germany. What a great way to move profits offshore, leaving the US division with negative. Now the new management, under the guidance of Nardelli works diligently to ensure the 2008 year end cash position meets the internal goal by cutting heads, shifts and payables. Why? Certainly not to ensure Chrysler survives the next 100 yrs, but to ensure they all get their bonus and golden parachute associated with a sale.
The workers didn’t approve the product plan or the decisions to bank on SUVs and Trucks. Management has known the climate conditions were changing for years yet made effort to adapt.
An excerpt from 1997. “Unlike GM or Ford, Chrysler is a domestic producer overly dependent on meager North American market growth at a time when most automakers are globalizing their businesses as quickly as possible.” Eaton has set his sights on doubling Chrysler’s exports, now running about 10 percent of unit sales, by 2000. In the year 2005, Chrysler finally launched its plan in China. Eight years? Now there’s a decisive team. While the top two people, Nardelli and Press are new, the rest are veterans.
Salary and UAW workers sacrificed pay and benefits for a decade to ensure those making the strategic decisions were highly compensated for executing the strategic direction. Now here we sit here eleven years later waiting on that pink slip because while they knew what had to change, they didn’t accomplish anything. No matter how you spin it.
Wouldn’t it be nice to have a mgt team that is actually committed to the auto business for something more than their own financial pocket stuffing? They miss the cash target, they might have to give up the buying that new home in Palm Beach with Eaton or wherever
he’s hiding.
August 2007, “This is the day we’ve all been waiting for,” LaSorda told the crowd, “the first day in the life of our incredible new company.” He stood on a stage in front of the Chrysler tower, which had a banner hanging from the roof that read: “Get ready for the next 100 years”
Wow did he say 100 years or weeks, or millions in executive bonuses. I can’t read it that well.
October 25th, 2008 at 8:43 am
This last comment is spot on
October 25th, 2008 at 9:59 am
Mojo
Right on buddy!
All the hard work of the greatest generation has been destroyed by the baby boomers.
I’m not going to work on the line like my parents did, I’m going to do drugs have kids out of wed lock and enjoy what life has to offer: Sex Drugs and Rock n Roll.
If I get into trouble mom and pop will bail me out.
The Greatest Generation has all but died off and aren’t available to bail us out this time.
I’m not throwing a blanket over all the baby boomers they’re plenty of us out here that hitch it up every day and earn a living, but they’re too many illiterate government entitled tubs of shit out there not contributing to society.
I think we need to find the lazy asses and put them to work pushing brooms and picking up road side trash.
I’m tired of the few carrying the burden for the many.
October 25th, 2008 at 4:08 pm
Rich - I don’t think that ‘most people’ understand that outsourcing costs everyone. If they did they wouldn’t drive Toyotas. They wouldn’t shop at Wal-Mart(made in China). And they wouldn’t buy computers from companies that outsource their tech support to India. Most Americans buy whats cheapest. Peroid.
I’ve gotten lectures from co-workers who complain that our jobs are being outsourced to China and India(I’m in tech), but then they get in thier Toyota or Honda to go home. I’ve gotten laughed at by them for driving American, but what can I say, if I am going to complain about my job being outsourced I damn well better not be outsourcing some guy in Michigan’s job.
October 26th, 2008 at 8:27 am
Reflex
Here’s another example.
I don’t eat at chain restaurants, I support my local independent owned eating establishments.
Last night I went to dinner with friends, we decided on Italian: They wanted to go to Olive Garden, is that even Italian?
Anyway I convinced them to follow me to a family owned Italian restaurant on the not so good side of town, the folks that own the place are actually from Italy and speak Italian.
They were blown away on how good the food was and the atmosphere was wonderful.
The moral to my story is the little restaurant supports local sports and charites, employed local people and serves one of a kind food fantastic food.
If we don’t support our local small business then they disappear, so if you can avoid Walmart please do so.
October 26th, 2008 at 10:27 am
You betchya, Rich!
October 26th, 2008 at 11:31 am
People will shop where they want and buy what they want.Everytime i go in walmart, it is packed with people.Why is that?Because they are looking for the best deal in town.Do you really think a person making $8.50 an hour really gives a shit were they shop?
Rich, your point really isnt a point.Are you saying all your personal belongings are made in the states.Are you saying your tv isnt made in the states (Yeah Right). Are you saying all your items you own were made in the united states Thought so)?
Who really cares if you eat at olive garden or some little place down the street.
The whole damn world is messed up right now.The united states has lost over 800,000 jobs so far this year and the number is climbing.Problem is there isnt any job creation being made.And we can thank the government for that one.Where will all those people find work?
Maybe a couple of them will be forced to get a job at olive garden or maybe even wlamart or maybe the little italian place down your street.
Times are really messed up for everybody right now!
October 26th, 2008 at 12:56 pm
Rich - You are now my hero. I am third generation Sicilian and no, Olive Garden is not Italian. I hate it when people try to get me to go there because its ‘Italian food’. Just because it has noodles and tomatoes does not make it ethnic.
I also avoid chains, very few do I consider worthy of dining at(I eat out *waaaay* too much). I have a running list of places here that are the real deal, from a Lebonese place to an Italian place that actually could give my mother a run for her money(not that I’d ever tell her that).
Everyone bitches about their Wal-Mart, but they won’t pay the pennies more to buy local. They bitch about Home Depot, but won’t go to the local hardware store. And they think Olive Garden is Italian food.
October 26th, 2008 at 3:08 pm
Olive Garden is the worst food. Now Romano’s Macaroni Grill Italian Restaurant has some of the best italian food i have ever had.
Olive Garden doesnt have crap on Macaroni grill!
October 26th, 2008 at 3:18 pm
http://www.detnews.com/apps/pbcs.dll/article?AID=/20081025/AUTO01/810250373/1148
“Chrysler cuts may help deal”
Detroit News, Sat. Oct. 25
Those still in denial are encouraged to read every word of this article.
October 26th, 2008 at 5:12 pm
Would anybody buy a chrysler at this time?
Or would you lease. I’am not sure what way to go.
October 26th, 2008 at 5:23 pm
3900 of the 5000 are contract workers. They knew from the beginning that they were the first to go!
October 26th, 2008 at 5:24 pm
Im curious to see how auto sales pan out for the automakers this month…..
October 26th, 2008 at 5:27 pm
Do any of you think once gas prices get back under $2.00 that it will help the autos in a big way or is the economy so beat up that it wont matter.
Oil settled at 63 on friday and gas by my house is $2.18 a gallon!
Maybe i will be getting one of those new dodge rams that won the best truck of Texas award!
October 26th, 2008 at 5:30 pm
Can you guys believe the Dodge Ram won the award for best truck in Texas beating out all the competition!
That is great news.
October 26th, 2008 at 6:02 pm
I would not buy a Dodge until they get better milage - even if they do have fancy built-in tool boxes. You buy one and the next thing you know gas prices will go up. And there we go again - $4/gallon. OPEC is trying to cut production to raise prices.
Who do you have picked for the WS? Phillies or Rays?
October 26th, 2008 at 6:16 pm
Mark - Whoever buys them will still be obligated to honor warranties, I’d say its a good time to buy. Bankruptcy might alleviate their warranty obligations, but a buyout would not legally speaking…
Bud - hoping for the Rays but I don’t really have a horse in this race. Two fun teams to watch, although so far the officiating is making me feel silly for opposing instant replay.
October 26th, 2008 at 7:05 pm
I buy local all the time. Screw big business! No big box stores for me. It may cost a little more to buy local, but it’s worth it. Why go to the big box stores and deal with people who don’t know jack when you can deal with your local, friendly mom and pop and talk to an expert? Why go to a national chain and get food that is simply reheated from the corporate ovens, when you can go to a local mom and pop and get it made from scratch. Better service, better quality — that is what buying local is all about. Big business and private equity firms stink. All they care about is their profits. Whatever happened to customer service?
Show me a local entrepreneur, and I’ll show you a merchant. Even the managers at the big box stores don’t know what it is to be a merchant. They don’t have an ounce of entrepreneurship in their bodies. All they know are company policies that drain employees of their creativity. When was the last time you were in your local meat market, if you still have one? The quality of meats and cheeses and the service at your local meat market is unmatched by the big box markets. I’ll bet the service there is better too.
Multinational businesses and multinational agreements mean that the little guy gets screwed. Look what happened to Chrysler after Daimler raped it and then threw it away when it was finished with it. Chrysler was a good company with well over 200,000 employees at one point. Now look at it — on a ventilator, grasping for every breath.
I am tired of big brother government too. We need to cut the size of the federal government in 1/2. We way pay too many taxes. Is there any wonder why people don’t have any money? Yesterday, I paid 9.25% sales tax in a nearby city. Property taxes are eating our lunch too. I say, throw the bums out - all of them! Yes, things are messed up alright. These days it is all about “me, myself, and I”, and “What’s in it for me?” Big money in politics keeps the parties focused on the needs of big business, big labor, and special interest groups. Whatever happened to the golden rule? Remember Andy Rooney in the movie Boystown, “He’s not heavy, he is my brother”? What has happened to society? Yesterday, I went to a ballgame and all the students were doing is texting messages. They weren’t even paying attention to the game. They spend more talking to people on their electronic gadgets than speaking in person.
Well, Bud, it looks like the Phillies are well on their way to winning the World Series.
October 26th, 2008 at 7:17 pm
Reflex - I with you on the Rays. I don’t have a horse in the race, but I would like to see them win. Having said that, it looks less and less probable now.
October 26th, 2008 at 7:23 pm
Art - While I agree with you on much of what you said, take a chill pill. No need to stress out. Que Sera, Sera (whatever will be, will be). In the end, everything works out for the good.
October 26th, 2008 at 10:09 pm
I take it no ones hear of the Sarbine-Oxley Act?
Here’s the plan in a nut shell more big government taking your rights back.
Two parent household earnings both working that is $62,000 to $66,000.
Lease one vechile buy one return lease vechile. This helps auto industry.
Entitlement of two weeks only for vacations and the purchase of one big ticket item.
Manufacturing jobs to no longer be manned by H.S. grads workers need to have a degree.
H.S. grads are only to work in the service industry, while going to school to advance themselves. This will stop college grads from having to file bankruptcy on loans due to an enability to find suitable employment.
The hiring protocol looks to be aready enacted Getrag and Honda use it.
October 27th, 2008 at 7:54 am
Art
Your right on the mark when it come to the difference between a merchant and a manager of a big box store.
In the car business the merchants saw the hand writing on the wall over a year ago, we cut staff adjusted inventory and added service to our dealerships.
We opened our service department on Sunday’s last February, it boosted our back end by 15%.
The General Managers of most new car dealerships only have sales department experience, they have no idea how a service or parts department work, these stores are failing at an alarming rate.
I spoke to my Chrysler Financial wholesale rep on Friday he told me that several Chrysler stores have failed or on the verge of failing in Southern California.
That at the current rate of failure Chrysler will have little representation in the Southern California Market.
This isn’t just an issue for Chrysler stores in Southern California, even Honda and Toyota stores are failing their.
October 27th, 2008 at 1:14 pm
Lurch, what the heck does SOX have to do with high school grads working in the service industry? Or household earnings in the 60k range? Or entitlement of two weeks vacation? Your entire post is nonsensical.
October 28th, 2008 at 12:01 pm
Art - Couple of points, although I agree with much of what you said…
1) We pay the lowest federal tax rate that we have paid since the 20’s currently.
2) Sales tax is a state tax, not a federal one
3) Property tax is a state tax, not a federal one
Otherwise I agree with you mostly. But you can’t blame the feds for what is up to the state you live in.
November 7th, 2008 at 8:57 am
“If we don’t support our local small business then they disappear, so if you can avoid Walmart please do so.”
Indeed, we’re seeing the evidence of this in the midst of the current economic fall-out. In the case of Walmart, its constant and unwavering devotion to outsourcing has allowed it to be one of the few companies to benefit even while revenues for most other companies are plummeting. There was an article in the Arkansas Democrat Gazette today saying that the sales at Walmart stores had risen by 2.4% despite all the other retailers having a dismal October.
Here’s a quote from the article:
“The 37 chain stores tracked by the trade group collectively saw a 0. 9 percent drop in sales from October 2007 in stores open at least a year, a key measure of performance in retailing. Excluding Wal-Mart, the other 36 chains saw a collective 4. 2 percent sales decline”
So either way, good times or bad, Walmart wins and we lose.
December 26th, 2008 at 5:54 pm
Steve - We need to avoid all big box stores, corporate america, globalization, and big government. Buy local and pay cash for everything. Protect your liberty, save your family, live a better life, and pray for America.
December 26th, 2008 at 10:48 pm
Archie, you needed to tell America to go out and purchase a new Dodge, Chrysler or Jeep. Let’s keep her going through the tough times because better times are just around the corner.
I do disagree with the small car company niche idea. It may be OK in the lean times, but Chrysler needs to build market share through higher and higher sales volume.
As for the real estate in Auburn Hills, Chrysler should just walk away from its lease when it is up and find a low-cost, low-rent facility in the rural South like Toyota did. There is more than one way to deal with a myopic Cerberus.