Signs point to more Chrysler job cuts

David Cole, chairman of the Center for Automotive Research in Ann Arbor, said the disclosures likely are directed toward employees and dealers, who will feel the effects of model or production cuts as the Cerberus private equity firm tries to get the company ready to take on a partner or perhaps be sold in an effort to turn a large profit.

"What they're really focused on is doing whatever it takes to fix the strategic issues in the company and prepare it for the next step," Cole said. "I don't think this is going to be a long, drawn out process."

Since its sale to Cerberus, Chrysler no longer has to report its earnings. If it loses money this year, it would be the second straight year of red ink. Chrysler lost $618 million in 2006 but made $1.8 billion in 2005.

Landry, while speaking to students in Halifax, Nova Scotia, also said Chrysler would reduce its number of models from 28 to around 20, which has the company's production workers worried.

The statements should worry Chrysler production workers, especially those who build slower selling products, the analysts said.

Bryce Cobb Jr., president of a United Auto Workers local at an engine plant in Trenton, Mich., said workers have fretted about cuts for the past three years. His plant makes engines for hotter selling products such as the new Dodge and Chrysler minivans and Jeep Wrangler, so there's less to worry about, he said. A new engine plant also is under construction at his site.

But at other plants, mainly on the vehicle assembly side, there is worry, he said.

"Unfortunately that puts a lot of people out of work if they do a reduction in (production) volumes," Cobb said. "I could be at another plant and be shaking in my boots right now."

Chrysler already has said it will eliminate four products through 2008: the Dodge Magnum wagon, the convertible version of the Chrysler PT Cruiser, the Chrysler Pacifica crossover and the Chrysler Crossfire sports car.

Some analysts expect Chrysler to realign its models so that all its cars are Chryslers, Dodge becomes exclusively trucks, and Jeep retains its off-road and sport utility vehicles.

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