Poor sales of its trucks and SUVs in the second half of 2006 will force the Chrysler Group to lay off 250 employees at its Mack I engine plant in Detroit. The job cuts will trim the work force at the engine plant to 530 employees beginning next week.

The plant builds the 4.7L V8s that can be found in Durangos, Dakotas, Rams, Grand Cherokees and others. Early last year, the plant was building 1,350 engines a day, but Chrysler has cut this to 850 engines by the end of the year. While Chrysler truck sales are off 8.4 percent in 2006, the union local is placing most of the blame on the automaker’s heavy promotion of its HEMI V8s built in Mexico.

This is expected to be just the first blow, as the Chrysler Group is expected to unveil a restructuring plan in February that’s likely to include additiona layoffs, plant closings and shift eliminations.

## Source: The Detroit News ##

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