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Chrysler has announced shift changes and job cuts at several of its North American plants and will discontinue manufacture of four models while introducing four new ones. In all, the cuts will reduce the hourly-paid workforce by between 8,500 and 10,000 in 2008.

The job cuts and shift changes are in addition to the 13,000 jobs that are to be lost through the three-year recovery and transformation plan (RTP) that was announced in February.

Bob Nardelli, chairman and CEO, said: "The market situation has changed dramatically in the eight months since Chrysler established the RTP as its blueprint. Annual industry volume for the US market then was running at 17.2 million. Now we expect a seasonally adjusted annual volume for 2007 to be significantly lower and carry over into 2008."

Chrysler is cutting third shifts at assembly plants at Belvidere, Illinois, at Toledo, Ohio and at Brampton, Ontario. Second shift operations will go at Jefferson North near Detroit and at Sterling Heights, also in Michigan. Jobs will also be lost at the Mack Avenue engines plant in Detroit.

Chrysler is dropping the Dodge Magnum, the convertible version of the Chrysler PT Cruiser, the Chrysler Pacifica and the Chrysler Crossfire. But it will add the Dodge Journey and the Dodge Challenger to the range, along with two new hybrid models, the Chrysler Aspen and Dodge Durango.

Nardelli said: "I'm confident that we have the right team in place and a business plan that doesn't need to be rewritten."