Chrysler to cut 13,000 jobs

The Chrysler Group will slash 13,000 jobs, close one assembly plant and eliminate shifts at two others in a broad restructuring aimed at returning the U.S. division of DaimlerChrysler AG to profitability in 2008.

The "recovery and transformation" plan announced today also leaves the door open for Chrysler to possibly be sold or aligned with strategic partners in the future, according to the DaimlerChrysler supervisory board.

Chrysler said it plans to reduce its hourly employment by 11,000 jobs — 9,000 in the United States. and 2,000 in Canada — over the next three years. About one-half of the reductions will be effective this year.

In addition, Chrysler will reduce its salaried employment by 2,000 positions over the next two years, with the first 1,000 job cuts coming in 2007.