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Mumbai: Chrysler LLC is planning to cut
up to 10,000 hourly jobs over the next 14 months as it
does away with four slow-selling vehicles and trims overall
production in North America.
The job cuts, that would affect over a fifth of Chrysler''s
unionised workforce, followed a scrapped through ratification
of a new contract with workers.
Chrysler said it would phase out shifts at five North
American assembly plants and stop making the Dodge Magnum
wagon, the convertible version of the PT Cruiser, the
Pacifica crossover utility and the Crossfire sports car.
The layoffs are in addition to 13,000 jobs that Chrysler
had already planned to cut as part of a restructuring
plan. The job cuts when undertaken would be the deepest
for any US automaker.
On a combined basis, Chrysler would be cutting almost
half of its unionised workforce as part of a stepped-up
restructuring plan since Chrysler''s new private equity
owner, Cerberus Capital Management, took control in August.
Chrysler and Ford Motor Co have reported double-digit
drops in October sales, lagging rivals in a slumping US
market widely expected to remain under pressure into next
year.
Chrysler posted a 12 per cent drop in monthly sales that
was deeper than analysts had forecast.
Ford recorded a 13 per cent monthly decline, reflecting
a cutback in low-margin sales to car rental agencies as
part of its own ongoing restructuring aimed at restoring
its US operations to profitability.
By contrast, Toyota Motor Corp snapped out of a quarterly
slump to post a slight gain in US sales, eclipsing Ford
to hold onto the No 2 spot in the world''s largest vehicle
market.
Sales for industry-leader General Motors Corp were down
almost one per cent for October.
Automakers
attribute the downswing to a combination of factors like
the slumping US housing market, higher gas prices and
wildfires in California.
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