Some of the 140,000 employees at Chrysler's network of dealers could also be at risk. (Cerberus will end up with no stake in Chrysler once the bankruptcy is complete and is in the process of cutting its stake in GMAC to less than 15%.) As part of the reorganization, lending will now be provided by GMAC, the finance arm jointly owned by General Motors ( GM, Fortune 500) and current Chrysler parent Cerberus Capital Management. That unit is essentially going out of business. The employees whose jobs may be most immediately in danger are the 3,400 workers of Chrysler Financial, which provides loans to Chrysler customers and its dealers. Most of Chrysler's hourly workers will receive about 80% of their normal pay during the shutdown under unemployment benefits and supplemental pay in the union contract. "Hopefully most of the suppliers will continue to supply us," he said. Hopefully we'll come through stronger."Ĭhrysler President Tom LaSorda would not say how many plants would shut down early or how many suppliers had cut off shipments on the bankruptcy news. "I was hoping we could get through this unscathed," said Gene Behme, a production technician at the Warren stamping plant as he left work about an hour early. Following the bankruptcy filing, some suppliers worried about being paid stopped shipping parts to the plants. Normal production is not due to resume until the transaction with Fiat is completed.īut some Chrysler plants, including truck assembly and stamping plants in Warren, Mich., shut down earlier than scheduled on Thursday. While an administration official promised there will be no immediate job cuts for the company's 39,000 employees or plant closings, Chrysler announced that most manufacturing operations will be temporarily shut down on Monday, May 4. Jobs safe for now, but plants will close temporarily
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