Suppliers to cut costs 15% over two years.
Workforce cut 20%, or 26,000 jobs, over three years. Included are 6,800 salaried jobs, of which 1,800 are on contract; manufacturing will lose 19,000 workers in a 15% reduction in capacity.
Plants to close include Mound Road, Detroit, engine plant (1,000 workers) in December 2002, its work shifted to the two Mack Engine plants in Detroit; Mexico's Toluca transmission plant in 2001 and Toluca Engine and Lago Alberto Assembly (Ram) in June 2002 for a loss of 2,600 jobs. Argentina's already closed Cordoba Assembly (Grand Cherokee), and Campo Largo in Brazil (Dakota) will close by the end of 2001, for another 500 jobs. Pillette Road, Windsor, (Ram van/wagon) closes in 2003 without new product (2,000 jobs).
Shifts eliminated: Pillette reduced to a single shift; Jefferson North, Detroit, (Jeep Grand Cherokee) and Bramalea in Brampton, Ont. (LH sedans) lose 1,200 each with the loss of their third shifts; Belvidere, IL (Neon) and Toledo (Cherokee) are reduced to a single shift,
Line speeds will be slowed at Newark, DE (Durango), and Windsor, Ont. (minivan).
Deals offered: Salaried workers aged 55 to 61 with 10 years' service can retire as if they were 62, and those 62 and older with 10 years receive an incentive, part of which goes to purchase avehicle.
United Auto Workers eligible for early retirement include members age 60 with 10 years service; those with 30 years pension credited service, or those aged 55 with enough years service to total 85 points. These employees receive retirement benefits and a $35,000 incentive, half of which must be used to buy avehicle.
Canadian Auto Workers receive retirement benefits and C$52,500, of which C$16,000 must be used to buy a Chrysler product.