Dennis Redmondism ?

Charles Brown CharlesB at
Mon Nov 13 09:38:08 MST 2000

Monday, November 13, 2000

Copyright 2000
The Detroit News.

DCX seeks a slimmer Chrysler
Automaker studies layoffs, plant closings, trimming product line to recoup losses

By Daniel Howes / The Detroit News

    FRANKFURT, Germany -- The Chrysler Group's drive to return to profitability is
prompting a thorough re-evaluation of the automaker's product portfolio, as well as
discussions about possible white-collar layoffs and plant consolidations.
   While no decisions have been made, the Auburn Hills-based unit of Germany's
DaimlerChrysler AG is forming as many as 10 "restructuring teams" to study key pieces
of Chrysler's operations and recommend changes to improve efficiency and boost lagging
   "We're challenging all of our business assumptions," Chrysler President James P.
Holden said recently.
   The urgency of the efforts is increasing as a new round of costly incentives sweeps
the U.S. car market, forcing Chrysler to slap incentives on its all-new minivans far
sooner than expected. Coupled with signs of slowing orders from dealers, which prompt
production slowdowns like last month's weeklong shutdown of seven U.S. plants,
Chrysler's financial outlook for the fourth quarter is under increasing pressure.
   In the past 12 months, Chrysler has trimmed the planned investment in its 2001-2005
product portfolio to $36 billion from $48 billion. The move is a recognition that
Chrysler cannot afford to build the cars and trucks envisioned just a year ago and
that customers likely would not pay full fare for them.


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