Chrysler's Belvidere plant to lay off 12,000 workers

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The Auburn Hills, Mich.-based automaker announced Nov. 1 that it would lay off up to 12,000 workers and eliminate shifts in five North American plants to combat sagging sales.

On Wednesday, Chrysler said starting Jan. 31 it will eliminate the third shift at the Belvidere assembly plant. The move affects 1,096 workers or nearly one-third of the plant’s approximately 3,400 workers.

“The action is a direct result of the tough economic environment and a response to the market,” said Chrysler spokeswoman Michele Tinson in a statement e-mailed to The Associated Press.

The company is talking with the local United Auto Workers union about offering buyout and special retirement incentives, Tinson said.

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