Steve Laube, 49, is an electrician at DaimlerChrysler AG & 39; s Jefferson North Assembly Plant in Detroit. Today, he wonders if there is still a future in the production of vehicles. Laube is so low on the seniority list and why he was off last month. Job cuts were triggered by the decline in demand for the installation of Jeep vehicles, including the commander and Cherokee.
Like any other Chrysler workers, Laube fear of the next restructuring announcement of the automobile. Analysts said that the restructuring could cost about 10000 production workers their jobs. " We heard they are going to call it a Valentine & 39; s Day massacre ", Laube said as he and other laid-off workers prepare for the " bank jobs " duty .
Laube have heard all the rumors about their situation. According to forecasts made earlier, two Chrysler plants will cease their activities and buyouts or early retirement package similar to the Ford Motor Co. And General Motors Corp. also will be offered the same. " They " nothing in the track, said Laube. " You just heard rumors, rumors, rumors ".
Analysts in the industry predict another 1000 to 1500 employees could lose their jobs when Chrysler Group decided to merge its domestic rivals to reduce factory capacity to meet demand for low vehicles.
Most employment cuts affect truck plants. This dilemma is imminent brought by the change of the market for small self-fuel efficient cars. Chrysler lost $ 1.5 billion in the third quarter of the previous year. Sales of the company were down by seven percent in 2006.
Chrysler & 39; s large trucks and sport utility vehicles represent about 70 percent of the sales of American company. That figure is significantly more than any other automaker.
Kevin Reale, an industry analyst for AMR Research Inc., said the vehicle probably has 15 percent too much manufacturing capacity and have to step on the brake to slow down. " They will have to trim out some assembly facilities to bring its capacity to produce vehicles in line with demand ", he added that the analysts said.
Other Mack Avenue Engine Plant 1, in Detroit, with some of 530 employees, has the ability to entertain plant closure because it makes the 4.7-liter V-8 engines are mated that the slow-selling trucks.
Also anticipated in the GM plant is the closure plan for 2100-worker plant in Newark , Delaware. That unit is responsible for the making of the Dodge Durango and the Chrysler Aspen. These vehicles failed to meet the expectations of automaker.
Erich Merkle, an industry analyst with IRN Inc. in Grand Rapids, said a 2330-employee plant near St. Louis, Fenton, Mo, which is Ram pickup is also on your list because Chrysler has two other factories that produce the Ram.
Chrysler refused to give details on which plants are on the blocks. He added involving the same information will be provided by the company with the earnings for the previous year.
Catherine Madden, an auto industry analyst with consultancy firm Global Insight Inc., said: " The most vulnerable are plants that make up the environment -- Size SUVs, which have fallen out of favor with buyers. Chrysler has been very traditional in that they were in the truck segments, a single platform with a single model with her. It is not only competitive from a manufacturing perspective ".
Robbyn Taylor-Higgs, 50, a veteran of 27 years of the factory Newark, is aware of the forthcoming closure. With the Durango sales down by about 39 percent, the closure is considered just around the corner.
" We are all on pins and needles now ", said Taylor-Higgs. " It is frightening. Something always appears to save us, but I think this time is different. With the Germans who have now, I do not believe that the American spirit is behind us. " jessenia emma
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