Chrysler will eliminate a shift at a Toledo, Ohio Jeep plant, and is accelerating the closure of an SUV factory in Newark, Del., which will leave 1,825 employees out of a job.
GM is also making cuts to save cash and will temporarily suspend company matching of its 401(k) retirement plan starting Nov. 1. GM will also suspend tuition reimbursement and adoption assistance as of the end of the year, reports the AP and USA Today.
Chrysler is closing the SUV factory in Newark, Del. earlier than planned due to the shift toward smaller, more fuel-efficient vehicles and a down economy. This plant will close at the end of the year, affecting about 1,000 workers.
As Chrysler eliminates one shift at the Toledo North Assembly Plant, about 825 workers will be laid off indefinitely as of Dec. 31. Chrysler’s cuts make up about 6 percent of the automaker’s U.S. hourly work force of 33,000.
The Toledo factory makes the Dodge Nitro and Jeep Liberty SUVs while the Newark factory makes the Dodge Durango and Chrysler Aspen SUVs. All four SUVs have experienced slow sales due to high gas prices and the consumer shift away from big vehicles.
"The markets are facing unprecedented turmoil and we are in a time of historic change in the auto industry," Frank Ewasyshyn, Chrysler’s executive vice president of manufacturing, said. "These tough, but necessary steps are vital to our long-term viability."