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10,200 Chrysler Workers Facing Layoffs

November 24, 1987|Associated Press

HIGHLAND PARK, Mich. — Chrysler Corp. will lay off 10,200 employees for one to three weeks in January when it idles four plants to reduce inventory, and will place 2,200 workers on indefinite layoff Dec. 23 when it permanently reduces production at three plants, a top official said Monday.

Despite those plant changes, Chrysler will raise overall production in the first quarter of 1988 by 1.4% by assembling more trucks, Chrysler Motors Chairman Gerald Greenwald said.

The indefinite layoffs will come at plants in Michigan, Delaware and Missouri, but Chrysler will add 1,300 workers at a plant in Illinois, he said.

Chrysler plans to produce 575,000 vehicles--300,000 cars and 275,000 trucks--in the first quarter of 1988, 8,000 more vehicles than in the first quarter of this year, when Chrysler made 326,000 cars and 241,000 trucks.

"While some softening in certain segments of the market is apparent, overall it remains solid and there are several areas of strength," Greenwald said.

Of companies producing cars in the United States, only Honda and Mazda plan to increase car production in the first quarter of 1988.

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