DaimlerChrysler AG’s Chrysler Group has idled two assembly plants to prevent unsold vehicles from accumulating at United States dealers, according to Associated Press.
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The car maker temporarily closed assembly plants in Sterling Heights and Toluca, Mexico, DaimlerChrysler officials told a local newspaper, AP said.
Company spokeswoman Mary Beth Halprin told Associated Press the shutdowns will temporarily idle 3,200 workers in Sterling Heights and 2,600 workers in Toluca – Sterling Heights builds mid-size cars and Toluca builds the PT Cruiser.
AP noted that the Chrysler Group’s continuing problems have prompted speculation company officials could be forced to implement additional cost-cutting that could require eliminating more jobs.
The original turnaround plan implemented in 2001 called for eliminating 26,000 jobs worldwide and the new labour pact with the United Auto Workers calls for eliminating another 1,500 jobs with the shutdown of the company’s Indianapolis Foundry and McGraw glass plant in Detroit as soon as the end of the year, Associated Press added.
