Chrysler Cuts Four Models and Five Shifts

By Brendan Moore

11.01.2007

The ax has finally fallen after a week of guessing.

Chrysler is making the Chrysler Crossfire covertible, Dodge Magnum, the Chrysler PT Cruiser convertible, and the Chrysler Pacifica crossover all go away.

Also going away are up to 10,000 hourly jobs before the end of 2008. Additionally, another 1000 salaried jobs and 37% of Chrysler’s contractors are exiting, and all hourly and salaried overtime has ended.

Frankly, I thought the vehicle cuts would extend further, and although the Crossfire convertible is finished, I’m surprised the Crossfire coupe is sticking around. (Editor’s note: we erred in reporting that only the convertible model of the Crossfire is cancelled – both the coupe and the convertible models have been slated for termination, thereby cutting the whole Crossfire lineup. Our apologies for the reporting error.)

The bitter pill of cuts from Chrysler does have a small sugar center, though – Chrysler stated it will add two all-new products to its portfolio: the Dodge Journey crossover and Dodge Challenger coupe, along with two new (surprisingly) hybrid models, the Chrysler Aspen and Dodge Durango SUVs. No word from the company on the production schedules or locations of these vehicles yet.

Bob Nardelli, CEO of Chrysler, released this prepared statement: “The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint.”

Now that’s a short statement.

COPYRIGHT Autosavant.net – All Rights Reserved

Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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9 Comments

  1. HOW IN THE WORLD DID THE JEEP COMPASS MAKE THE CUT? THAT POS DESERVES TO DIE!

  2. Got to go with jeepster here, how does the Compass (and several other pseudo-jeeps) stay in production?

  3. The Compass makes more sense than the Commander in the current market. How did the Commander escape the ax?

  4. My UAW rolls over and plays dead for Chrysler and this is what we get in return. Saying I told you so is not giving me any pleasure, that’s for sure.

  5. I love my Pacifica and I’m sorry to see it go.

  6. wtf, how did the Chrysler Aspen stick around? the Dodge Magnum is better-looking, a better vehicle, and has more popular appeal than the Aspen. Where is the logic?

  7. Our union abondoned us, didn’t stand up to these strip and flip guys and now we are SOL. We’ve been betrayed and misled. I hope the UAW at Ford has taken a good look at what’s happened to the Chrysler employess.

  8. Did anyone really expect the Cerberus was going to do “business as usual”? If so, then you are hopelessly out of touch with how equity firms work. Things are going to get worse before they get better at Chrysler, so fasten your seatbelts, all you whiners! This is capitalism!

  9. It’s just a guess on my part, but the combo of a limited run of production, great looks, and lots of power might make the Dodge Magnum sought-after later. I don’t think it will be a big hitter ever in terms of collecting, but I think it will popular among collectors later.

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