ENGINE-PLANT STRIKE STALLS CHRYSLER.Byline: Brian S. Akre Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Chrysler Corp. said production of the highly profitable Jeep Grand Cherokee The Jeep Grand Cherokee is a mid-size sport utility vehicle produced by the Jeep division of DaimlerChrysler. European Grand Cherokees are manufactured in Austria by Magna Steyr. Development The Grand Cherokee was a spinoff of the smaller Jeep Cherokee. , Dodge Ram
The Ram is a full-size pickup truck from Chrysler LLC's Dodge brand. The name was first used in 1981 on the redesigned Ram and Power Ram, though it came from the hood ornament used on pickup and two other truck models will grind to a halt today because of a strike at a Detroit engine plant. About 1,800 members of the United Auto Workers The United Auto Workers (UAW), headquartered in Detroit, Michigan, officially the United Automobile, Aerospace & Agricultural Implement Workers of America International Union went on strike Thursday at the Mound Road plant after negotiators failed to reach agreement on a new local contract. The strike occurred on the same day the nation's No. 3 automaker reported a record first-quarter profit of $1.03 billion, a 2 percent gain over the first three months of 1996. Chrysler has been the most profitable of the Big Three automakers in large part because it produces far more trucks than cars. Demand for trucks has been strong while car sales, which generate less profit, have declined. The walkout will shut down production of the Jeep Grand Cherokee in Detroit, Dodge Ram and Dakota pickups at the Dodge City Dodge City, city (1990 pop. 21,129), seat of Ford co., SW Kans., on the Arkansas River; inc. 1875. The distribution center for a wheat and livestock producing area, it also packs meat and makes agricultural implements. complex in Warren, Mich., Ram pickups at St. Louis, and full-size Ram vans in Windsor, Ontario. The move will affect 12,080 workers at those plants. The pickups and Grand Cherokee are some of Chrysler's most popular light trucks. Chrysler said customers should not have trouble finding the affected models on dealer lots - for now. Chrysler has a 60-day supply of Grand Cherokees and Ram pickups, considered normal by industry standards. Major issues in the negotiations include plant health and safety, discrimination against minority workers and Chrysler's move to shift some parts production to outside suppliers, Local 51 said President Sam Nardicchio. He declined to elaborate. Negotiations with Local 51 began in January after Chrysler signed a national contract with the UAW (spelling) UAW - Misspelling of "IAW"? in late 1996. That plant is Chrysler's only U.S. manufacturing site without a local contract. A prolonged strike could severely hurt the automaker. ``We're talking about half their business affected by this strike,'' said industry consultant Christopher Cedergren of Nextrend. ``If it lasts for a significant length of time, it's going to put a dent in profits - a big dent.'' The Big Three automakers have made themselves more vulnerable to strike-related production interruptions by adopting so-called lean production methods. They have narrowed the number of sources for each part. And engines and other parts are delivered to assembly plants only as needed as needed prn. See prn order. to save on storage expenses. ``It's maybe too much reliance on one plant, but you really need to do that these days to get the cost efficiencies,'' Cedergren said. CAPTION(S): Photo Photo: John Longo, right, and other UAW members walk the picket line Thursday at Chrysler's Mound Road Engine Mound Road Engine was a Chrysler Corporation automobile engine factory in Detroit, Michigan. The plant was closed by DaimlerChrysler in 2002, with production shifting to the Mack Avenue Engine Complex. Plant in Detroit. Associated Press |
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