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DaimlerChrysler Announces Chrysler Group Will Lose $1.5B In Third Quarter

DaimlerChrysler AG's unexpectedly announced that its Chrysler Group will lose about $1.5 billion in the third quarter -- more the double previous forecasts, the Wall Street Journal reports (McCracken et al., Wall Street Journal, 9/17). Earlier this month, Chrysler and the United Auto Workers ended discussions on health care, meaning that the automaker will not receive the same health benefit concessions from the union as Ford and GM. UAW President Ron Gettelfinger said the union would not enter the agreement because Chrysler is in better financial condition than the other two companies (Kaiser Daily Health Policy Report, 9/11). DaimlerChrysler officials said the Chrysler Group is being affected by increasing health care and pension costs for former employees. The company will spend an estimated $2.3 billion in 2006 to cover health care costs of 375,000 employees, retirees, dependents and surviving spouses. Those costs added an average $1,400 to the cost of each vehicle Chrysler produced last year, according to Bloomberg/Philadelphia Inquirer (van Loon/Powell, Bloomberg/Philadelphia Inquirer, 9/16). The "worsened outlook raises pressure on the UAW" to resume concession discussions, according to the Journal (Wall Street Journal, 9/17). Ford To Eliminate Jobs, Close Factories
Meanwhile, Ford announced that it will eliminate an additional 10,000 salaried jobs and finish cutting all 30,000 North American factory jobs four years sooner than originally planned. The plans display Ford's "increasingly desperate" attempts to avoid billions of dollars in losses, the Bloomberg/Philadelphia Inquirer reports. Ford said the eliminations -- which reduces its salaried workforce by 40% -- would save an estimated $5 billion annually on operating costs (Koenig/Lippert, Bloomberg/Philadelphia Inquirer, 9/16). Last week, Ford announced that it will offer 75,000 hourly workers buyout packages, some of which will include the loss of health and pension benefits (Kaiser Daily Health Policy Report, 9/15). UAW Comments
UAW President Ron Gettelfinger has not commented on Ford and Chrysler's recent developments but last week said, "It's important to understand that the financial struggles of Detroit's Big Three auto makers and traditional suppliers aren't the result of a cycling slump in the U.S. auto market." Instead, he said, U.S. automakers are facing difficulties because they are unable to compete with foreign rivals who benefit from governments that provide health care and pensions to their citizens (Wall Street Journal, 9/17).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.





DaimlerChrysler Announces Chrysler Group va pierde $ 1.5B În treilea trimestru - DaimlerChrysler Announces Chrysler Group Will Lose $1.5B In Third Quarter - articole medicale engleza - startsanatate