Chrysler LLC has just announced two measures to help the privately-owned automaker scale back production to meet lower demand in the marketplace. The first is to move up the closure of its Newark Assembly Plant, which builds the Dodge Durango and Chrysler Aspen, from late 2009 to December 31, 2008. The second is to eliminate one of two shifts at the Toledo North Assembly plant that builds the Dodge Nitro and Jeep Liberty, also effective December 31. Chrysler says the Newark plant employs 1,000 workers, while 825 will be affected by the shift reduction in Toledo. According to The Detroit News, those 1,825 workers out of a job represent about 6% of Chrysler's hourly-workforce. These moves will also likely spell the end for the Durango and Aspen SUVs, as Newark is the only plant producing them and has been scaled back to one shift since July 2006.
For the entire month of December, Ford's plant in St. Paul, Minnesota, where about 1,000 workers assemble the Ford Ranger, will shut down. According to reports, it is normal for the plant to be closed for the week of Christmas, but an additional three weeks of downtime is necessary to "align production with demand." The plant had initially been scheduled to be shuttered sometime in 2008, but the recent upwards trend in small pickup sales prompted the Blue Oval to keep it open a bit longer and it currently has no specific date set for closure, though it's demise is currently rumored for sometime in 2011. Perhaps if Ford would actually do something to update its long-in-the-tooth Ranger truck, it wouldn't need to consider its death at all, but that's another story entirely.
The old equation holds true: fewer cars sold means fewer workers required to assemble them. This basic truth has been proven once again with GM's announced lay-offs of some 1,500 hourly workers, The cut's breakdown includes about 700 workers from General Motor's Pontiac assembly plant, about 400 each at both its Wilmington, Delaware, assembly plant and its Detroit-Hamtramck facility. In Pontiac, where GM assembles full-size trucks, the worker reduction is necessary as General Motors reduces its output to just 24 trucks per hour from 55 per hour. In Detroit, the General will cut its Buick Lucerne and Cadillac DTS production from 56 units per hour to 38, and in Delaware where the Pontiac Solstice, Saturn Sky and Opel Roadster are built, production has already been cut in half. This announcement comes just days after GM said it would close plants located in Grand Rapids, Michigan and Janesville, Wisconsin.
General Motors has announced that it will close its Grand Rapids metal and die plant by the end of 2009. The announcement comes one day after the General said it would close its Janesville, Wisconsin-based SUV assembly plant by the end of 2008, and one week after it announced the same production end date at its Moraine, OH plant. The closure of the Grand Rapids metal and die plant won't make the same waves as the two assembly plants, but the facility employs a substantial 1,340 hourly workers and another 180 salaried employees, which is more than Janesvile or Moraine. The employees are eligible for 48 weeks of supplemented unemployment that adds up to the majority of their base wage, followed by a trip to GM's job bank. Three plant closings in two weeks is a lot, but with Oshawa truck and Toluca still scheduled for closure, there are still more doors to shutter in the days ahead.


Looks like that Moraine, Ohio plant that was going to be shut down next year is actually going to be shuttered on December 23rd, just in time for Christmas. This is the plant responsible for production of the GMC Envoy, Chevy Trailblazer and Saab 9-7X. The General had already slowed the plant to just one shift as SUV sales, particularly sales of old SUVs like these, continue to tumble, but the plant was expected to remain open until at least early next year. On Friday the remaining 1,100 workers were gathered and told of the revised plan. The closure isn't a total surprise, as General Motors had already announced that the Dayton-suburb plant would be closed so the company could focus more on production of small cars. That initial announcement seemed to indicate a 2010 closure, but the company has continually revised the closing date until this most recent word came. Moraine is one of four GM plants that are going to be shut down. When Janesville, Wis.; Oshawa, Ontario; and Toluca, Mexico join Moraine in closure, a total of 8,350 workers will be looking for new jobs.

Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog's keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar's many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends up owning the facility, the plant would still use the union workforce being abandoned from the soon-to-close Detroit Axle plant.
Before Cerberus took over Chrysler, the Auburn Hills-based automaker announced that it would build a new axle plant in Marysville, MI as part of a broader plan to spend $3 billion on infrastructure upgrades. The new plant is under construction and scheduled to open in 2010, but the three headed dog's keen eye(s) on cash preservation has lead to talks with transmission maker ZF to somehow share the facility. It is unclear at this point what ZF, which is known for its transmissions but also produces axles for Mercedes, would get out of the deal, but the supplier would likely run the plant and get to build and sell axles for Chrysler, as well as other automakers, at the facility. The move to share the Marysville facility with ZF makes sense for Chrysler from a cash standpoint, and it could supply axles for one of the Pentastar's many collaboration projects with other automakers like Nissan. Regardless of whether ZF or Chrysler ends up owning the facility, the plant would still use the union workforce being abandoned from the soon-to-close Detroit Axle plant.
