July 3, 2006
Chrysler sees most planned job cuts by yr end-report
DETROIT (Reuters) - Chrysler Group expects to have 70
percent of its planned executive job cuts completed by the end
of this year, Chief Executive Tom LaSorda said in an interview
with The Detroit News on Monday.
The executive job cuts at Chrysler are part of a plan
announced in January by parent company DaimlerChrysler, which
aims to cut worldwide costs by $1.8 billion per year and has
announced plans to cut some 6,000 positions.
The plan means that Chrysler's executive ranks will be
trimmed by 180 positions from 1,200 currently, LaSorda was
quoted as telling the newspaper.
"We're doing a (headcount reduction) right now, 15 percent
of executives for the next three years, with 70 percent of that
by the end of the year," LaSorda told the newspaper.
Chrysler representatives were not immediately available for
LaSorda had said earlier this year that the white-collar
job cuts would be achieved through attrition, buyouts and early
The job cuts at Chrysler come as the automaker, which will
report June sales on Monday, struggles with slower sales and
high inventory levels in the first half of this year.
As of the end of May, Chrysler had a 77-day supply of
unsold cars and trucks. The company has also been the most
aggressive of the Detroit-based automakers in offering sales
incentives and discounts.
Chrysler rolled out an employee pricing offer this weekend,
combined with zero percent financing.
Auto industry tracking firm Edmunds.com on Monday estimated
that before that offer took effect Chrysler was already
spending $3,768 on incentives per vehicle sold in June, more
than Ford Motor Co. and General Motors Corp.