Auburn Hills, Michigan – Chrysler LLC chairman and CEO Bob Nardelli has announced in a letter to employees that the company will further reduce its salaried and supplemental workforce, beginning in November 2008.
The reductions are in addition to previously announced actions, and will be accomplished through a combination of programs, including voluntary retirements and salaried employee buyouts. The programs will include cash and new-vehicle vouchers. Details on the new voluntary programs will be made available to Chrysler salaried employees in the next two weeks; involuntary separations will also take place by the end of December.
The company also told employees that it will cut back on all discretionary and overhead expenses, and reduce capital expenditures not connected to major product programs. Nardelli also said that Chrysler will make additional organizational and restructuring announcements in the near future as the company works to find new ways to operate.
“These are truly unimaginable times for our industry,” Nardelli said. “We continue to be in the most difficult economic period most of us can remember. The combination of troubled financial markets, difficult credit, volatile commodity prices, the housing crisis and declining consumer confidence continues to weigh on the economy. Never before have auto industry sales contracted at such a fast rate. Throughout this challenging time for our industry and our company, we have continued to face the realities of our business environment, and working as a team, we have been right-sizing our organization to become as competitive as possible.”