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February 15, 2007

Concerns over Daimler-Chrysler job cuts

Permalink: Concerns over Daimler-Chrysler job cuts

CHRYSLER

Concerns have been raised about the future of the Daimler Chrysler relationship, after the Chrysler division shed more than 13,000 jobs on Valentine’s Day.

Dubbed a second “Valentine Day’s Massacre” by local workers unions in Michigan, in reference to an infamous 1920’s mob shooting, the massive job cuts come as Chrysler struggles with a $1.4 billion debt.

It’s news that continues to hit Michigan hard, the home os US car manufacturing. A general decline in traditional car sales have seen all the major US car makers struggling. Ford and General Motors are already shedding around 70,000 jobs them and closing a string of production plants.

It also raises questions about the overall strength of Daimler’s relationship with Chrysler. Daimler, the German division, can only be expected to help buoy their US counterpart for so long.

Meanwhile, Chrysler continues to restructure the company, apparently known as Plan X within the company.

The question remains as to how much time is required before serious questions about the relationship translate into serious actions that could sever it.

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Quentin Willson
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