Chrysler makes production cuts

Though Chrysler LLC will cut 82,000 vehicles from its production in the fourth quarter, company officials say little impact should be felt here.

Chrysler Vice President Jim Press outlined plans to turn around the company's lagging sales during a dealer sales event in Las Vegas, according to Thursday reports from The Detroit News.

To remedy the situation, Press said, the carmaker will cut 82,000 vehicles from fourth-quarter production schedules. It is expected to reduce inventory by 100,000 units by this time next year.

Michelle Tinson, manager for Manufacturing and Labor Relations for Chrysler, told the Kokomo Tribune the decision may affect plants.

"I wouldn't be able to comment, there would be spill over to production facilities," she said. "We normally don't disclose if we're going to schedule downtime until a week before."

Guy Barger, president of United Auto Workers Local 685, which represents workers at three transmission manufacturing facilities in Kokomo, said the local plants would be impacted.

"There is going to be a minimal impact in Kokomo," Barger said. "One product line will be reduced, but one production line will be increasing. We're fortunate that it is coming at a good time."

Commenting on the settlement of Wednesday's six-hour strike by union members, Barger said he was happy that it was resolved fast.

"Nobody likes to be out on strike," he said. "There is a lot of uncertainty."

Barger said local union officials have no details on the contract settlement and a date for a meeting with the union leadership in Detroit has not been set.

"There is no question about it," David Cole, executive director of the Center for Automotive Research in Ann Arbor, said of the impact of the production cuts on manufacturing plants.

Cole said Chrysler's is a multi-step process to return to profitability.

"The first step is a competitive cost structure," he said. "There will be a partner with Chrysler in the future, fairly soon. That couldn't happen until a contract agreement was reached. Chrysler can't thrive and prosper as a North American-only automotive company."

As an example, Cole noted the General Motors partnerships, which have cars manufactured in Germany and South Korea. Cole said Chrysler could partner with a company to manufacture small cars and remain in truck and sport utility vehicle production.

"There are all kinds of things in play here," he said.

Cole said the announcement of the strike settlement on Wednesday was leaked by a company official and was meant to have been delayed for some period of time.

With the GM negotiations, UAW President Ron Gettlefinger said the issue was job security and shifted the focus away from health care and the wage tier, according to Cole.

"I think it was a good agreement for the union because it preserved the companies," he said. "We'll know the details of the Chrysler agreement next week."

Pat Cooper, president of UAW Local 1166 said he had no comment on the "past, present or future."