DaimlerChrysler AG’s Chrysler Group has announced a three-year ‘Recovery and Transformation Plan’ designed to turnaround the company, which will include 13,000 job cuts by 2009, reducing material costs by up to €1.15 billion ($1.5 billion), exploring the sale of support operations, including transportation services, reducing production capacity by 400,000 units per year, eliminating a shift at its Newark (Delaware) Assembly plant and the Warren (Michigan) Truck plant this year, eliminating a shift at St Louis (Missouri) South Assembly plant next year, and making the Newark Assembly Plant idle in 2009.

In 2007, the group also expects to further reduce dealer inventories to align with market demand, which will result in a reduction in operating profit of approximately €230 million ($300 million).