Chrysler to slash 12,000 jobs

Chrysler LLC said Thursday it would cut 12,000 jobs in North America through 2008, including up to 10,000 hourly workers, as it retrenches in the face of lower than expected demand for its cars and trucks.

In addition to the elimination of shifts at five assembly plants, including Jefferson North and Sterling Heights, Chrysler said it would also trim workers at other plants. The moves come on top of the 13,000 job cuts under announced in February under its previous turnaround plan. Chrysler Chairman and Chief Executive Bob Nardelli said in a statement that the automaker was moving now because it expected industry sales to run “significantly lower" than the 17.2 million vehicles it had expected for 2007, with the weakness stretching into 2008.

“We have to move now to adjust the way our company looks and acts to reflect a smaller market," said President and Vice Chairman Tom LaSorda in a statement. “That means a cost base that is right-sized and an appropriate level of plant utilization."