Chrysler has transmission plants and a casting facility in Kokomo.

In a letter to employees, Chrysler LLC Chairman and CEO Bob Nardelli today announced that Chrysler would take additional salaried and supplemental workforce reductions beginning in November 2008.

This adjustment to workforce levels is in addition to previously announced actions, and will be accomplished through a combination of socially responsible programs, including voluntary retirements and – in order to broaden the eligible group – salaried employee buyouts. These new programs will feature enhanced benefits, including both cash and new-vehicle vouchers.

Details on the new voluntary programs will be made available to Chrysler salaried employees in the next two weeks (Oct. 24-Nov. 5, 2008). Involuntary separations will also take place by the end of December.

The Company today also told employees that in order to more diligently control spending, it would cut back on all discretionary and overhead expenses and reduce capital expenditures not connected to major product programs.

Nardelli added that Chrysler would make additional organizational and restructuring announcements in the near future as the Company works to find new ways to operate.

The following is attributed to Bob Nardelli, Chairman and CEO, Chrysler LLC:

“These are truly unimaginable times for our industry. We continue to be in the most difficult economic period most of us can remember. The combination of troubled financial markets, difficult credit, volatile commodity prices, the housing crisis and declining consumer confidence continues to weigh on the economy. Never before have auto industry sales contracted at such a fast rate. Throughout this challenging time for our industry and our company, we have continued to face the realities of our business environment, and working as a team, we have been right-sizing our organization to become as competitive as possible.”