Chrysler Announces Idling of Newark Assembly Plant
A Delaware bombshell from Dr. Z:
Delaware’s efforts to save DaimlerChrysler AG’s Newark plant have failed.
In an effort to return the company to profitability, the Chrysler Group announced today that they will idle the SUV Assembly line in Newark, Delaware in 2009. The company plans to eliminate one of its two shifts later this year.
The Newark plant employs approx 2,000 and about another 900 in local suppliers.
Our hearts and thoughts are with the men, women and their families who are uncertain about what the future holds for thier employment with Chrysler.
You can read the full details of DaimlerChrysler AG’s plan available on their website below:
Reaction from Delaware Governor Ruth Anne Minner tried to remain positive, and pointed out that the door was still open to reactive the plant in the future:
“While we were hoping for no reductions at the plant, this news is not as bad as it could have been in light of the company-wide cost reductions. We are pleased that the plant will not be closed and look forward to continued opportunities to work with DaimlerChrysler in the years ahead to develop strategies that would help the facility return to production.”
You can read the rest of her statement here- Gov. Ruth Ann Minner Issues Statement on Daimler Chrysler Announcement
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Here’s some more info on The costs of closing Newark assembly plant from the Delaware Business Ledger.