Reply #4: Chrysler to cut 13,000 jobs, faces possible sale

[ozymandius]

DETROIT/FRANKFURT (Reuters) - DaimlerChrysler (DCXGn.DE) said on Wednesday it would cut 13,000 jobs at its Chrysler operation in North America and indicated it could sell or spin off the money-losing unit, which would unwind a troubled 9-year-old merger between Chrysler and Mercedes.

The world's No. 5 automaker said it would shut two Chrysler plants as part of a strategy to make the business profitable by 2008 as it focuses more on building fuel-efficient cars, a sector of the market dominated by its Japanese rivals.

The automaker will also cut North American production capacity by 400,000 units through 2009.

The announcement -- the biggest shake-up of the group since Germany's Daimler-Benz AG and Chrysler Corp joined forces in 1998 -- sent DaimlerChrysler's share price surging to its highest point in more than four years.

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