DaimlerChrysler to cut 13,000 Chrysler jobs

Automaker DaimlerChrysler has said in a statement that they would be cutting around 13,000 jobs at its Chrysler operations in North America.

Market experts believe that the company could potentially now consider the possibility of parting with the loss-making business.

The company further announced their plans to close two plants as they aim to make Chrysler business profitable by 2008.

DaimlerChrysler would also now focus on developing fuel efficient cars which are increasingly becoming relevant in the US market.

They are also planning to cut North American production capacity by 400,000 units through 2009.

Market analyst Tim Ghriskey, chief investment officer at Solaris Asset Management spoke about the company: “It’s hard to say if it’s enough … but the stock is reacting nicely, which is further verification that this is a favorable restructuring move and a much-needed one at Chrysler.”

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