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Job cuts won't fix Chrysler

Chrysler's new owners, Cerberus Capital Management LP, will need concessions from the UAW to trim costs and become competitive with Japanese automakers, industry experts say, but labor cuts alone will not turn Chrysler into a success, according to Detroit Free Press business writer Joe Guy Collier.
Chrysler estimates that Japanese automakers, such as Toyota Motor Corp., have a $30-an-hour labor cost advantage, counting benefits and special provisions, and the gap could grow to $45 an hour by 2009 without changes to the UAW contract, Collier reports. Chrysler, Ford and GM begin contract talks this summer with the UAW, presenting an opportunity to rework labor costs for all three automakers.

Posted by   at 10:24 AM to Companies | Permalink

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