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As previously disclosed, Chrysler also will cut salaried employment by 1,000 and cut contract employment by 37 percent.

The company also plans to eliminate hourly and salaried overtime and reduce purchased services due to the reduction in volume, Nardelli said.

Nardelli said the volume-related actions are in addition to 13,000 jobs eliminated by the three-year Recovery and Transformation Plan (RTP) announced in February.

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