DETROIT — As many as 10,000 Chrysler Group employees could lose their jobs, and at least three plants appear vulnerable to closure under the company's long-awaited cost-savings plan that is to be made public next week, auto insiders say.
Chrysler is expected to announce its restructuring plan Feb. 14, when analysts expect the company to post a loss for the year of $1 billion excluding restructuring charges. Kevin Tynan, an analyst with Argus Research Co., expects 8,000 to 10,000 Chrysler jobs to be cut, along with reductions in production capacity.
"Obviously, they've got to consolidate some production facilities. I really can't hold much hope out for the Durango plant in Newark, (Del.)," said Joe Phillippi, principal analyst at AutoTrends Consulting.
Chrysler executives are tight-lipped about the plan. Chrysler has cut jobs and closed plants since 2001, and its restructuring is not expected to be as deep as those Ford Motor Co. and General Motors Corp. announced last year.
Assuming the buyout packages offered to Chrysler employees are similar to those at Ford and GM, they would cost the company about $100,000 per person. Other facilities at risk include Chrysler's St. Louis truck plant, one of three plants that make Dodge Ram pickups.
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