The ambience is bleak so are their faces. They knew it is coming but thereseems to be no way out. To Chryslerâs workers in Delaware, the austeritynever felt that bad. Well, not until the job-losing spell is cast. Theannouncement about plant closures and job cuts crushes them intosmithereens.
Chryslerâs workers are anxious about the outcomes of the slump in demandand sales of the automakerâs vehicles. However, it still struck them hardwhen the announcement was conveyed to them. At Newark, Delaware, there is nobetter proof of the challenges facing DaimlerChrysler AG’s Chrysler Group andits workers than the rows of Dodge Durango sport utility vans built down theroad at the automakerâs assembly plant.
The Dodge Durangoâs sales dropped 39 percent last year compared to that of2005. With the increase of gasoline prices and the shift of the market to smallfuel-efficient cars, Chrysler had little to offer customers. This is primarilydue to the fact that 70 percent of its sales depend on fuel-thirsty trucks.
Earlier, the automaker has declined to go into details when asked about thething they call as Project X. However, last Wednesday, the much-awaitedrevelation happened as scheduled. Chrysler has finally announced its widelyexpected restructuring plan that necessitates slashing of at least 11,000hourly and salaried workers and the closure of at least two factories in theUnited States and this is including the Newark Assembly. The plan dubbed asProject X is formulated to transform Chrysler into a leaner and morecompetitive company that will bloom by working more closely with its Germanparent Mercedes-Benz in producing vehicles.
The situation elicits various reactions from the workers. Harry McHenry, an83-year-old retiree from Newark Assembly, said, “I wouldn’t want to be in theirshoes today or working in manufacturing. The big SUVs are too expensive to fillup.” He could wish to assemble Volvo plugs but tono avail – for he is stranded in the doomed plant.
Lee Cross, a forklift driver who has 27 years seniority said, “The publicgets to make the decision whether we stay open by what they buy.” Cross is 45years old and he turned down the Marine Corps at age 18 and went to work at theNewark Assembly. “If the plant closes,” he said, “it’s going to have a bigimpact on this town.”
Kenneth Malin, also a co-owner of Malinâs Market and Deli, said,âChrysler’s just like any other business. If their costs exceed revenue, theyhave to do something.” He added, “Obviously, people have moved away from bigSUVs.” The restructure plan could save the automaker but one thing is sureabout the whole deal: it will force a painful reality on the lives of theworkers and other businesses linked to it – from Detroit, Windsor to Newark.Malin predicted that business could drop five percent to seven percent if thefactory is shattered.
The Newark Assembly has been on a one-week-on, one-week-off rotation sinceJuly last year. This gives workers more time to worry about their future.“People have been on edge for weeks, waiting and waiting,” said Dan Benson, a41-year-old mother of one with 16 years at Newark. “There’s been a lot ofcrying, a lot of people worried about losing their homes and worried about whatthey would do next.”
DaimlerChrysler is not alone in this plight. General Motors and Ford MotorCo. are included in the chaotic scenario in the United States. In addition,analysts are predicting that industry retrenches will intensify in the next fewyears. Delphi Corp., a bankrupt auto supplier, intends to close 21 of its 29plants in the United States. Ford plans to close 16 plants by 2012 and GM willshut down 12 factories by the end of 2008.
Glady Reign is a 32 year old is a consultant for an automotive firm based inDetroit, Mi. she is a native of the motor city and grew up around cars henceher expertise in the automotive field.