Chrysler LLC announced that it will cut about 1,000 salaried jobs by the end of September as part of its restructuring plans to survive the critical downturn in the U.S. automotive industry. Along with the 1,000 jobs, Chrysler is supposed to cut its contract work force as well.

The company has already sent a memo to employees regarding the details of reduction. The executive vice president for human resources and communications, Nancy Rae wrote in the memo, “To respond to the current market conditions, an incremental manpower reduction of 1,000 salaried employees by September 30, 2008, will be required.” (more…)

The U.S. third largest automaker, Chrysler LLC denied the bankruptcy rumor, speculated by analysts after the automaker exercised a $2 billion line of credit from Cerberus Capital Management LP and Daimler AG. Chrysler drew down a $2 billion credit line late last month from Cerberus and Daimler AG, the German car maker that sold, roughly 80 percent stake in Chrysler to Cerberus.

Cerberus Capital Management LP is a private equity firm that bought Chrysler LLC about a year ago.

Chrysler said it has plenty of cash, while denying the speculation, that Chrysler was planning to file for bankruptcy protection through the credit. (more…)

One of the Detroit Big 3, Chrysler LLC plans to idle its St. Louis South assembly plant that makes minivans and cut the production at St. Louis North plant as the U.S. sales for larger vehicles continue to fall.

Both the plants are located in Flenton, Missouri in St. Louis County. The tough decisions have been taken due to the slow sales of the larger vehicles in the market. The moves will affect a total of 2,400 employees in both the plants.

Chrysler LLC will close its St. Louis South assembly plant indefinitely, effective October 31.

The automaker’s co-president Tom LaSorda said that the plant is not likely to reopen in future. He further added, "We see no intent to rerun this plant. We’re idling it and it will likely be fully closed." (more…)

In response to rising costs of steel and other raw materials, US third-largest car maker, Chrysler LLC is raising prices by an average of 2 percent of its remaining 2008 vehicles. Noteworthy, the steel prices for automakers have risen $500 a vehicle since January.

According to Chrysler spokesman, Stuart Schorr, “Today’s economic conditions and future forecasts indicate unrelenting pressure as it relates to commodity prices, specifically steel, which have forced our hand.” (more…)

According to a German newspaper, Chrysler LLC is in intense talks with Italian car manufacturer Fiat negotiating a possible cooperation between the auto giants for the production of Alfa Romeo models in Chrysler’s U.S. Factories. The talks are believed to be in the advanced stages. Fiat produces and sells automobiles, trucks, wheel loaders, excavators etc.

According to the German newspaper Handelsblatt, “Handelsblatt has learned Chrysler could produce the cars for Fiat subsidiary Alfa Romeo. Industry sources say the talks are moving forward."

According to Reuters, on April 7^th 2008, Fiat had announced  its intensions to sell the Alfa Romeo model in the United States.

Fiat has so far declined to comment on the ongoing negotiations with Chrysler LLC.

Behind these talks, Chrysler and Nissan Motors have also announced a production alliance that would provide America, its much needed small car. It would also enable the Japanese car manufacturer (Nissan) to stay in the competition with the American pick-up truck market.

Another Toyota executive jumped ships and joined Chrysler LLC. According to Chrysler spokesman Kevin Frazier, Sigmund Huber is now the director of supplier relations for Chrysler with effect from May 1^st 2008. He was formerly the general manager for external and corporate affairs for Toyota Engineering & Manufacturing North America, situated at Erlanger, Kentucky.

Huber had served Toyota for nine years and also held the post of Toyota’s purchasing relations. John Campi, Chrysler executive vice president for procurement is Mr. Huber’s new boss and he would be reporting directly to Mr. Campi. One of the most important jobs of Sigmund Huber would be to set up a ‘global risk management process in Chrysler’s procurement organization’.

The last executive that Chrysler LLC took away from Toyota was Jim Press, who had given 37 years of his career to Toyota. He later moved to Chrysler as its president and vice chairman in September 2007.

Chrysler announced a lifetime full-powertrain warranty on all 2006, 2007 and 2008 Chrysler, Dodge and Jeep vehicles starting immediately. Chrysler CEO Tom LaSorda told dealers abpiut the new Chrysler Powertrain Warranty during a conference call. Chrysler will continue to cover the rest of the vehicle with its three-year, 36,000-mile basic limited warranty. Vehicles with diesel engines and SRT packages are excluded. The new Chrysler Powertrain Warranty is designed to help them compete with offers such as General Motors’ 5-year/100,000-mile powertrain warranty. This will cover such cars as the Chrysler Pacifica. The Chrysler warranty offer comes as Chrysler prepares to become an independent U.S. automaker owned by the private equity firm Cerberus Capital Management LP.
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