Chrysler plans job cuts, plant closings

Two Chrysler plants are thought to be in jeopardy of closing.
DETROIT (AP) -- DaimlerChrysler AG's Chrysler Group will unveil a restructuring plan that includes job cuts and plant closures when it releases its 2006 earnings in February, a company official said Friday.
The official, who did not want to be identified because he is not authorized to speak about the plan, said the restructuring won't be as drastic as in 2001, when Chrysler shed 40,000 employees with layoffs and the sale of component plants.
Company spokesman Jason Vines would not comment on the plan, details of which were reported by The Detroit News on Friday.
DaimlerChrysler's shares fell 47 cents to 60.76 in afternoon trading on the New York Stock Exchange.
Industry analysts have predicted job cuts and up to two plant closures as Chrysler moves to stem losses. The company lost 1.5 billion in the third quarter, and its sales were down 7.7 percent through November compared to sales in the first 11 months of last year.
Buyouts
Chrysler Chief Executive Officer Tom LaSorda has said he does not expect widespread buyout and early retirement offers to be included in the restructuring.
Domestic competitors Ford Motor Co. and General Motors Corp. both offered buyouts to all their hourly workers earlier this year. About 38,000 Ford workers signed up for the offers, while 34,000 GM employees have decided to leave the company.
LaSorda has been giving the DaimlerChrysler governing board updates on the restructuring at its meetings, the official said. The board last met Wednesday.
Analysts have speculated that a Chrysler plant in Newark, Del., that makes large sport utility vehicles and one in St. Louis that makes pickup trucks are likely to be closed when the restructuring is announced.
DaimlerChrysler AG plans to make its 2006 earnings announcement at Chrysler Group's Auburn Hills headquarters Feb. 14.
Company officials have said previously that they are looking for cost cuts in all operations and that the results would be unveiled in the first quarter of next year.