Chrysler Announces Early Plant Closure, 1,825 Job Cuts After Posting $662M 3Q Loss

Detroit, MI (AHN) - Third-largest U.S. automaker Chrysler LLC on Thursday announced a $662 million net loss in the second quarter and said it will close its Newark, DE plant a year early and cut one shift at its Toledo Jeep plant.

About 1,000 workers at the Newark plant will lose their jobs by the end of the year. That assembly plant manufactures Dodge Durango and Chrysler Aspen sport utility vehicles and had originally been slated for closure at the end of 2009.

About 825 workers at the Toledo North Assembly Plant will go on indefinite lay offs effective Dec. 31.

Those cuts will slash 6 percent of Chrysler's workforce. It announced the cuts at the same time it announced a net loss of $662 million in the second quarter of this year.

Chrysler is run by Cerberus Capital Management [CBS.UL].

It has clarified that Daimler AG (DAIGn.DE:) losses were $112.7 million on a 19.9 percent share in the automaker during the second quarter on a U.S. GAAP basis.

Overall, Chrysler's automotive and financing businesses have reportedly lost about $1.17 billion through the first half of the year.