Report: The Chrysler Turnaround Plan

A lot is going on at the new Chrysler LLC. Executives are seriously studying the company”s lineup and are hoping to kill off slow selling models and adding more diesels and hybrids. The company looking to eliminate models that overlap each other and is looking for new niches that it should possibly venture into.

So far, Chrysler is expected to drop the Dodge Magnum, Chrysler Pacifica, Chrysler Crossfire and the PT Cruiser. But what else does new CEO Robert Nardelli plan on doing to turnaround the new private auto maker?

Chrysler is expected to cut down its staff by slashing 8,500 to 10,000 hourly jobs before the end of 2008 while cutting 1,000 salaried jobs, along with 37% of contract workers. The company will be dropping shifts in its Belvidere assembly, Jefferson North in Detroit, Toledo in Ohio, Brampton in Ontario, Sterling Heights in Michigan and Mack Ave in Detroit. Chrysler will also be eliminating hourly and salaried overtime.

New products expected to help the turnaround currently include the Dodge Challenger Coupe that will be unveiled at the Detroit Auto Show in January, and the Dodge Journey crossover. Its first hybrid initiative will include hybrid versions of the Chrysler Aspen and Dodge Durango.

“In the past,” Nardelli said, “the company has produced vehicles without understanding the needs of the market. They’ve built cars to build, as opposed to building cars for customers. … They’ve been building inventory of vehicles that haven’t necessarily been built for customers’ or dealers’ requests.”

 

Source: Automotive News (Subscription Required)

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