Chrysler town and country

DETROIT (AP) Chrysler LLC will cut 1,825 jobs by eliminating one shift at a Toledo Jeep plant and accelerating the closure of its sport utility vehicle factory in Newark, Del., because of the slowing global economy and a shift toward smaller vehicles. About 825 workers at the Toledo North Assembly Plant will be laid off indefinitely as of Dec. 31. The Newark closure also will be effective at the end of the year and affect about 1,000 jobs, the company said Thursday in a news release.

It’s a somber day for Lucas County. It’s a somber day for manufacturing, but also a day of opportunity for those workers because they have good packages negotiated by the UAW, said Lucas County commissioner Pete Gerken. The cuts are about 6 percent of Chrysler’s U.S. hourly work force of 33,000.

The estimated downsizing at Jeep could translate into a loss of $1.5 million annually to the city tax revenue, Toledo Councilman George Sarantou told FOX Toledo News late Wednesday afternoon after rumors started to circulate. The Toledo factory makes the Dodge Nitro and Jeep Liberty. Both have been selling slowly this year due to high gas prices and a slowing U.S. economy. The Newark plant makes the slow-selling Dodge Durango and Chrysler Aspen sport utility vehicles.

It originally was expected to close at the end of 2009. Ninety percent of those laid off will receive 90 percent of their pay through 2011 in a deal UAW struck with Chrysler. Other employees will be offered buyouts from Chrysler. Money will still be coming in to employees and their families so those laid off can have the time to learn a new trade. People that manufacture are smart, work hard and know how to put things together, Commissioner Gerken said.