New Chrysler plants will lose jobs
Yesterday, the Chrysler Group said that they will spend $1.43 billion to build an engine plant and an axle plant in southern Michigan. The plants would make parts for Chrysler and Mercedes vehicles, even as the American and German companies prepare for a separation.
Instead of more jobs, however, the new plants are expected to employ about 1,815 fewer workers than the ones they will replace.
DaimlerChrysler, Chrysler's parent company, lost nearly $1.5 billion in 2006. Sources say that DaimlerChrysler could wrap up a sale of Chrysler as early as next month.
Sources: The New York Times, The Toronto Star, MSN Money, Reuters
3 Comments
Talk about an awkward situation...this is one of the few times you'll see a photo of a governor shaking hands with an executive in a move that will actually result in fewer jobs. However, it's not quite the same as a company just cutting 1,815 workers--in this case, Michigan will be getting new, presumably state-of-the-art plants that in the long term will help the economy much more than if the old plants remained with more workers. A new plant won't soon be shuttered, but those older plants had their fate guaranteed.
Still, there is no getting around that the U.S. does not need as many automotive workers as it once did to produce the same volume of vehicles. We have a country that provides inadequate support for transitioning to new careers/industries in need of employees, which I believe lowers our economic efficiency (in a perfect economic model, any worker can do any job and will relocate to do it). It's not a good sign if it's true that auto workers have trouble finding new careers with the same wage levels, because their transition support far exceeds what the average worker gets.
By
Karim Khan, Business Facilities Editor in Chief on April 20, 2007 12:40 PM
In a global economy , as the world shrinks , MS is fostering education and electronic connections. Hopefully, the value package of the education will outweight the product identification of their company .
The future of the automotive industry will lay in applying new fuel saving technologies and creating a low carbon consumption vehicle.
By
Anonymous on April 22, 2007 8:20 PM
Chrysler Group is going to build an engine plant and an axle plant in southern Michigan.It will help to reduce unemployment that is some new jobs will produce.
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Stewart
car auctions
By
stewart on September 07, 2008 2:29 PM
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