By JOHN DEMPSEY
Tribune business writer
Though many Chrysler employees may refer to Wednesday as the Valentine's Day massacre, that isn't the case for the majority of Kokomo's 6,000-plus Chrysler workers.
Kokomo operations went nearly unscathed in Wednesday's announcement of a corporate restructuring plan, and left the scent of a rosy announcement possibly coming this spring.
The restructuring and transformation plan announced by Chrysler Group CEO Tom Lasorda called for the closing of one assembly plant and a parts distribution center, shift cuts at two other assembly plants and a 16 percent reduction in the work force by 2009.
In Kokomo, 100 hourly employees at ITP I will be trimmed this year through those programs and another 175, from all four Kokomo plants, will be cut through similar programs by 2009, according to Chrysler spokeswoman Michelle Tinson.
"We're happy that the effect on Kokomo is minimal," said UAW 685 president Guy Barger. "We have some things ahead of us. We have jobs to do and, we need to move forward and get them done.
"There are some buyouts, retirements and incentives, and we're looking forward to getting those."
As part of its strategic transformation plan, Lasorda said 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.
"Yes, he confirmed that they have signed an agreement," Chrysler spokesman Dave Elhsoff said. "No additional details are available, but you will be hearing more in the near future.
"That obviously bodes well for [Kokomo]. You've been the center of the storm for discussions."
Chrysler plans to invest $3 billion in a "powertrain revolution," according to Lasorda. That includes investing in new engines, transmissions and axles as well as Bluetec diesel engines from the Mercedes Group and Cummins.
Of that $3 billion, a new plant to produce the dual clutch transmissions would cost approximately $600 million. According to a September memorandum of understanding between Chrysler and the United Auto Workers, it would be built at a Kokomo site - preferably in Howard County near Indiana Transmission Plant I and II - with transmissions rolling out in the summer of 2009.
"Securing this site for Kokomo and Howard County will help us continue our three-year trend of bringing reduced unemployment and increased employment opportunities to Kokomo," Kokomo Mayor Matt McKillip. "We will continue to do all that we can to help Chrysler and Getrag see the benefits of choosing Kokomo for a new site."
But, rumors which have been circulating through Kokomo since last week - which included the presence of the National Guard at Chrysler's facilities, the closing of Kokomo Transmission Plant and laid-off employees being immediately escorted out of the plant - proved totally unfounded.
The reduction in force of 11,000 hourly and 2,000 salaried workers will come through "special retirement, separation and attrition programs [which] will be announced later," Lasorda said at Wednesday's announcement of DaimlerChrysler's 2006 earnings.
Chrysler is in negotiations with the UAW over those programs.
The 275 Kokomo reductions are part of a planned 1,000 reductions in Chrysler's powertrain operations. Assembly plants will take the biggest hit with 4,000 jobs being eliminated.
Of the 2,000 salaried jobs to go, an initial 1,000 will be let go in 2007 - all from Michigan facilities - and the other 1,000 will come from the company's global operations in 2008.