AUBURN HILLS, Michigan (Reuters) - Chrysler Group, the struggling U.S. arm of DaimlerChrysler AG, on Wednesday said it would cut 13,000 jobs or 16 percent of its work force in a bid to return to profitability by 2008.
The job cuts in the long-awaited restructuring plan went deeper than analysts had expected.
DaimlerChrysler also said it was "looking into further strategic options" for Chrysler as the automaker cuts capacity and shifts its focus toward more fuel-efficient vehicles.
DaimlerChrysler, the No. 5 automaker by global sales, said it would book a restructuring charge of up to $1.3 billion for the Chrysler cost-cutting.
Chrysler said 11,000 of the jobs targeted for elimination were hourly workers represented by its unions, including 9,000 in the United States and 2,000 in Canada.
I've had hopes for Chrysler ever since they became the only US manufacturer that builds interesting vehicles (300C, Magnum, Charger, all the SRT versions). It's a shame.