Is Chrysler safe in Kokomo?

Kokomo Tribune

Kokomo's Chrysler transmission facilities emerged largely unscathed in Wednesday's restructuring and transformation plan.

The plan, announced at DaimlerChrysler's announcement of its 2006 earnings, will:

• reduce the Chrysler Group's assembly production by 400,000 vehicles in 2009;

• eliminate shifts at Newark, Del., and Warren, Mich., this year and St. Louis South in 2008;

• close Newark, which produces Dodge Durangos and Chrysler Aspens, in 2009;

• close the Cleveland parts distribution center in December;

• and result in a 16 percent cut in the work force by 2009.

Approximately 13,000 employees will be let go through a variety of retirement, buyout and attrition plans, according to Chrysler Group CEO Tom Lasorda.

Lasorda also said that DaimlerChrysler's board of management has approved a joint venture with Getrag Corporate Group to make dual clutch transmissions. That was an announcement many in the Kokomo area have been awaiting.

The plan calls for a reduction of 11,000 hourly employees, including 1,000 employed in powertrain operations, and another 2,000 salaried employees.

Kokomo will lose 275 hourly employees, according to Michelle Tinson, Chrysler spokesperson for manufacturing and labor.

The company plans to cut 4,700 hourly employees this year and 100 of those will be in Kokomo. The other 175 jobs will be reduced over the next two years, she said.

Of the 2,000 to be cut from the salaried employee force, the first 1,000 will be cut this year and all will be from Michigan facilities, Tinson said. The other 1,000 will be from the global work force in 2008.