The potential hit to Chrysler Corp.’s earnings from the shutdown of four of its highly profitable light-truck factories is likely to inspire a quick settlement.
Chrysler and the United Auto Workers said negotiators would resume talks Monday to try to end the strike at a Detroit engine plant.
The shutdown of four light-truck plants, which started Friday, will cost Chrysler about 16,000 units a week in lost production, which translates into a weekly penalty of about $70 million after-tax, estimated David Healy of Burnham Securities.
A strike by about 1,860 workers at Chrysler’s Mound Road plant idled an additional 11,000 workers at plants that assemble the automakers’ profitable Dodge Ram and Dakota pickups, Jeep Grand Cherokees as well as some full-size vans. The engine-plant strike forced Friday’s shutdown of Chrysler’s Warren, Mich., truck plant, which makes Ram and Dakota pickups; the Jefferson North plant in Detroit, which makes Jeep Grand Cherokees; the Pillette Road plant in Windsor, Ontario, which makes full-size vans; and the St. Louis North plant in Missouri, which makes full-size pickups.
No talks have been scheduled between the two sides, said UAW spokesman Bobbie Barbee. Barbee also noted that in addition to the 1,800 members of Local 51 that are on strike, there are about 13 clerical workers from Local 889 and about 50 technical and engineering workers represented by Local 412 that are on strike with Local 51.
