Chrysler decides not to build any new plants in U.S., Canada, and Mexico

Aug. 18, 2005. 06:43 AM
Jobs to dwindle at Chrysler
New CEO will focus on making better use of existing plants and workers
TONY VAN ALPHEN
BUSINESS REPORTER
Toronto Star

AUBURN HILLS, Mich.-Job levels at DaimlerChrysler Canada Inc. will
likely fall because the booming auto maker is focusing on ways to build
vehicles more efficiently and maximize production capacity, says
the company's incoming head of North American operations.

Tom LaSorda, who will become chief executive officer of Chrysler Group
on Jan. 1, said yesterday that he doesn't see any prospects for new
production investment in Canada and expects gradual reduction in jobs at
assembly operations.

LaSorda, a Windsor native, told reporters at Chrysler headquarters here
that Canada will have to compete for future investment after the
company's decision to cancel two major projects in Windsor in recent
years.

The Canadian Auto Workers union, which represents about 10,200 employees
at Chrysler in Canada, insists that Windsor must be the site of any new
company assembly plants in North America because the auto
maker backed off on the earlier commitments.

But LaSorda, Chrysler's current chief operating officer, said the
company has no short or even long-term plans to build new assembly
operations on the continent because it is trying to squeeze out as much
production as possible at current plants by moving from two to three
shifts.

"We have all the capacity we need right now," he said.

DaimlerChrysler's two assembly plants in Windsor and Brampton already
operate on three shifts.

LaSorda said vehicle demand and the best business case for assembly
operations anywhere in the world will drive decisions on site
selections.

"It's a global play now," he said. "You can make a product everywhere."

LaSorda said he does not expect the company's position to hurt
negotiations next month when worker contracts expire in Canada.

"We have got a great working relationship," said LaSorda, who grew up in
a union family. "I don't see this as a major issue in bargaining."

In 2002, DaimlerChrysler prevented a strike by indicating it would build
an assembly plant for small trucks in Windsor if it could make a
business case for the project.

The company cancelled the project the next year, saying the model could
not generate enough demand. The decision infuriated the union.

But DaimlerChrysler added a third shift and about 1,000 new jobs in
Brampton earlier this year because the Chrysler 300 luxury sedan has
turned into a market hit.

Union president Buzz Hargrove has said a commitment for the next
Chrysler plant will be a hot topic in bargaining but has stopped short
of saying it is a strike issue.

LaSorda, who has turned around DaimlerChrysler's manufacturing
operations in the past five years, said the company is "challenging" its
engineers to design vehicles with more integrated systems and
modules, which will mean the need for fewer assembly workers.

DaimlerChrysler AG, the world's fifth biggest auto maker, is introducing
10 new models during 2006 in the biggest launch year in the company's
history.

LaSorda said product demand can still create jobs but the employment
numbers will be lower.

"Will it always be at the same level it is today? Not likely," he said.

Under LaSorda, the company has closed six factories and eliminated
26,000 jobs in North America since 2000 in efforts to stop big financial
losses. The moves and hot new products have returned the
company to profitability.

The auto union has accepted the trend to bigger modules and more
production efficiencies. However, it wants to reduce the impact by
bargaining for more time off the job for existing workers, which would
force more hiring.

LaSorda said the company is still negotiating with the federal
government for financial assistance for construction of a new paint shop
at its Windsor minivan plant. The shop, which will cost more than
$350 million, is critical to the future of the plant and to improving
vehicle quality.

Some union leaders believe DaimlerChrysler will use the paint shop as a
bargaining chip in contract negotiations.

Meanwhile, LaSorda said the company may continue to offer employee
discounts to consumers next month in Canada and the U.S. The discounts
have sparked huge gains in sales at General Motors, Ford and Chrysler
in the last few months.

"We are looking at it," he said. "We'll see what happens."

Although gasoline prices have soared to record highs in the U.S. and
Canada this year, LaSorda said his company has not noticed a shift by
consumers to more fuel-efficient vehicles.

The company is offering more engines that can shut off some cylinders in
highway driving and reduce fuel consumption. It is also working on more
efficient four-cylinder engines.

LaSorda said DaimlerChrysler will decide soon whether to start building
minivans in China, but he has denied reports that the company would
export any vehicles made there.

The company has assembled Jeep sport utility vehicles in China for
several years.

The CAW has expressed concern about Chrysler's long-term intentions in
China and the potential effect on the Windsor plant, the biggest minivan
operation in the world.

The Supervisory Board of DaimlerChrysler AG today has taken the
following personnel decisions:

As previously announced, Dr. Dieter Zetsche (52), at present Head of
Chrysler Group, will be appointed Chairman of the Board of Management of
DaimlerChrysler AG as of January 1, 2006. In addition, he will become
Head of Mercedes Car Group as of September 1, 2005.

Dr. Eckhard Cordes (54), Head of Mercedes Car Group, will leave the
company at his own request on August 31, 2005, after 29 years of
service.

Thomas W. LaSorda (51) will become Head of Chrysler Group as of
September 1, 2005. On the same date, Eric Ridenour (47) will succeed
Thomas W. LaSorda as Chief Operating Officer (COO) of Chrysler Group.
Ridenour has been appointed as Member of the DaimlerChrysler Board of
Management for a period of three years starting on September 1, 2005.

Cordes, appointed last year to the Mercedes post, was passed over to
succeed Schrempp in favor of Chrysler Group CEO Dieter Zetsche. Cordes
offered his resignation, insiders say, because he felt he had lost the
confidence of the board of directors. Zetsche replaces Schrempp on
January 1, 2006.

--
God Bless America, ßill O|||||||O
http://www.billhughes.com/

I just wonder ..... when there is no longer ANY manufacturing in North
America and with the resultant of no more jobs for north americans
('cept for shysters and politicians) to have .... who is going to buy
all the "chrysler" etc. products?

We are all going to go on Welfare and import everything from Japan. <g>


"Rich Hampel" > wrote in message
...
>I just wonder ..... when there is no longer ANY manufacturing in North
> America and with the resultant of no more jobs for north americans
> ('cept for shysters and politicians) to have .... who is going to buy
> all the "chrysler" etc. products?

Are you kidding? If you want something cheap these days you don't go to
Japan. You go to China or India, maybe Taiwan, but you sure as hell don't
go to Japan. They have LONG since ceased to be cheap labor.


"Billy Ray" > wrote in message
...
> We are all going to go on Welfare and import everything from Japan. <g>
>
>
> "Rich Hampel" > wrote in message
> ...
> >I just wonder ..... when there is no longer ANY manufacturing in North
> > America and with the resultant of no more jobs for north americans
> > ('cept for shysters and politicians) to have .... who is going to buy
> > all the "chrysler" etc. products?
>
>

We'll all be working for shysters and politicians. It you think about it,
we are already there.

Earle

"Rich Hampel" > wrote in message
...
> I just wonder ..... when there is no longer ANY manufacturing in North
> America and with the resultant of no more jobs for north americans
> ('cept for shysters and politicians) to have .... who is going to buy
> all the "chrysler" etc. products?

Rich Hampel proclaimed:

> I just wonder ..... when there is no longer ANY manufacturing in North
> America and with the resultant of no more jobs for north americans
> ('cept for shysters and politicians) to have .... who is going to buy
> all the "chrysler" etc. products?

Is already happened. Most R+D work these days is overseas, leaving
car dealers in some areas to shutter their doors over the past few
years since the dot.compost bust.

When good paying manufacturing jobs were first going to Japan in the 70's a
local union leader was asked about the future. That quote is what he said
back then.

The point of the question was/is..... If everyone is on Welfare who is going
to be paying the taxes to pay for Welfare? He didn't comprehend that
working people support the people who can't work or refuse to work.

This is compounded by politicians who promise members of special interest
groups a government check if they intentionally make themselves unemployable
in return for their votes.





"Tom Greening" > wrote in message
...
> Are you kidding? If you want something cheap these days you don't go to
> Japan. You go to China or India, maybe Taiwan, but you sure as hell don't
> go to Japan. They have LONG since ceased to be cheap labor.
>
>
> "Billy Ray" > wrote in message
> ...
>> We are all going to go on Welfare and import everything from Japan. <g>
>>
>>
>> "Rich Hampel" > wrote in message
>> ...
>> >I just wonder ..... when there is no longer ANY manufacturing in North
>> > America and with the resultant of no more jobs for north americans
>> > ('cept for shysters and politicians) to have .... who is going to buy
>> > all the "chrysler" etc. products?
>>
>>
>
>