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Klegon: No more job cuts

by Bill Cawthon on

Frank Klegon, Chrysler’s executive vice president for product development, says the company is not including additional workforce reductions in the viability plan to be submitted to the federal government next Tuesday.

Klegon’s comments came after the announcement of General Motors’ plan to trim an additional 10,000 people from its payroll. Klegon noted Chrysler had a major reduction in force last November when about 25 percent of its salaried employees were let go.

Chrysler has reduced its employee count by 38 percent since the end of 2006 and some industry experts say the automaker may be at the point where it’s impossible to trim any farther without jeopardizing the company’s ability to function. Some analysts are already saying Chrysler does not have enough in-house staff for development of new vehicles which is why it needs the alliance with Fiat SpA.

Chrysler must present a detailed plan for long-term sustainabilty in order to obtain an additional $3 billion in government-guaranteed loans.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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