TOLEDO (WTOL) - Chrysler LLC has announced that, as of Dec. 31, it will lay off 825 workers from its Toledo North Assembly Plant. Currently, there are 2,100 workers at that location.
News 11 learned Wednesday from UAW union sources that Chrysler would file a WARN notice with the State of Ohio. That WARN notice was to tell the Ohio Department of Job and Family services that Chrysler intended to cut 800-1,200 workers from employment at the Toledo Jeep operations.
All of those workers are eligible for job retraining benefits offered by the state.
A statement released by Presidential nominee Barack Obama on Jeep layoffs
"My heart goes out to the workers and families affected by the cutbacks at the Toledo North Jeep assembly plant. Once again, our autoworkers are paying a price for the failed economic policies of the past eight years. The autoworkers I've met at the Chrysler plant in Perrysburg and across Northwest Ohio can outcompete workers anywhere in the world, but they need a President who will fight for them. That's why, as President, I'll provide domestic automakers with the funding they need to retool their factories and make fuel-efficient and alternative fuel cars. I'll enforce our trade deals and fight for a level playing field for our automakers. I'll invest $150 billion over ten years in green energy - an investment that will create up to five million new jobs - because the cars of the future can and must be made right here in America. I refuse to accept that we have to stand idly by as manufacturing jobs get shipped overseas. The fight for American manufacturing is the fight for America's future - and I believe that's a fight this country will win."
Chrysler says it intends to offer several early retirement or severance packages to exisiting workers. Once they take those packages, those workers would be finished as Chrysler employees.
Any worker not taking a package goes on layoff and is protected by the union contract until September 2011. They would collect 95 percent of their pay until the union pact expires. At that point, all ties to Chrysler would be obliterated, and they would be without jobs.
Union officials were briefed on the plan on Wednesday.
Chrysler news release:
Chrysler LLC Clarifies Daimler AG's Third Quarter 2008 Earnings and Announces Production Changes Due to Ongoing Global Economic Downturn
AUBURN HILLS, Mich., Oct. 23 /PRNewswire-FirstCall/ -- Today, Daimler AG reported a net loss of euro 351 million for its 19.9 percent share of Chrysler Holding LLC's second quarter 2008 results under International Financial Reporting Standards (IFRS).
On a U.S. GAAP basis, Daimler AG's net loss for Chrysler Holding LLC was euro 88 million, of which a euro 76 million net loss is attributable to the automotive business of Chrysler LLC.
The difference between the loss of euro 351 million reported by Daimler AG related to its 19.9 percent interest in Chrysler Holding LLC and the euro 88 million of net losses is attributable to the following:
-- Adjustments for differences between U.S. GAAP and IFRS accounting standards which equate to approximately a euro 171 million loss;
-- Other Daimler AG adjustments not related to Chrysler Holding LLC results totaling approximately a euro 92 million loss.
Chrysler Holding LLC is comprised of Chrysler LLC, the automotive company which manufactures and sells Chrysler, Dodge and Jeep(R) vehicles worldwide, and Chrysler Financial which provides financial services for these vehicles in the North American region.
Additionally, in response to the continuing global economic slowdown and auto industry contraction, as well as the market's continuing movement toward smaller vehicles, Chrysler LLC is announcing the elimination of one shift of production at its Toledo (Ohio) North Assembly Plant and the pull-ahead of the closure of the Newark (Delaware) Assembly Plant.
The schedule change will adjust inventory to better match consumer demand.
"The markets are facing unprecedented turmoil and we are in a time of historic change in the auto industry," said Frank Ewasyshyn, Executive Vice President - Manufacturing, Chrysler LLC. "These tough, but necessary steps are vital to our long-term viability. However, these headwinds will not prevent Chrysler from aggressively pursuing its mission to respond to consumers with products they demand, like the all-new Dodge Ram, which was recently named 'Full-Size Pickup Truck of Texas'."
The shift reduction at Toledo North will be effective December 31, 2008, and will affect approximately 825 jobs. The closure of the Newark plant will also be effective December 31, 2008, and will affect approximately 1,000 jobs.
Chrysler is committed to working with the UAW to address the represented manpower reductions in a socially responsible manner. As the Company has done in the past, the UAW and management leadership will hold employee meetings to review special programs that will be offered at the affected locations.
Currently, the Toledo North Assembly Plant has approximately 2,100 employees and operates on two shifts, producing Dodge Nitro and Jeep Liberty. Employees are represented by UAW Local 12.