Results 1 to 6 of 6

Thread: Chrysler shuts down all production

  1. #1
    Norville Rogers
    Kernel Sanders's Avatar
    Join Date
    Jul 2008
    Location
    Pittsburgh, PA
    Last Seen
    07-23-12 @ 10:20 PM
    Gender
    Lean
    Undisclosed
    Posts
    3,730

    Chrysler shuts down all production

    Source [CNN Money | Chrysler shuts down all production]

    NEW YORK (CNNMoney.com) -- Chrysler LLC announced late Wednesday that it is stopping all vehicle production in the United States for at least a month.

    All 30 of the carmaker's plants will close after the last shift on Friday, and employees will not be asked to return to work before Jan. 19.

    Chrysler blamed the "continued lack of consumer credit for the American car buyer" for the slow-down in sales that forced the move.

    The company ordinarily shuts down operations between Dec. 24 and Jan. 5. This closure would add roughly two weeks to that shutdown.

    Chrysler is the third of the Big Three automakers to suspend operations for January. Last week, General Motors announced it was idling 30% of its North American manufacturing capacity during the first quarter of 2009 in response to deteriorating market conditions. That move will take 250,000 vehicles out of production. On Wednesday, a Ford spokeswoman confirmed for CNN that the automaker is adding a week to its normal two-week seasonal shutdown at a number of its plants.

    Chrysler would not say how many fewer vehicles would be produced because of this shutdown. A total of 46,000 employees will be affected. They will be paid during the time off through a combination of state unemployment benefits and Chrysler contributions, but they will not receive the full amount of their working pay, a Chrysler spokesman said.

    "Chrysler dealers confirmed to the company at a recent meeting at its headquarters, that they have many willing buyers for Chrysler, Jeep and Dodge vehicles but are unable to close the deals, due to lack of financing," the carmaker said in an announcement. "The dealers have stated that they have lost an estimated 20% to 25% of their volume because of this credit situation."

    Auto sales have been hit hard by tight credit and the struggling economy. Overall auto sales in the United States were down 37% last month compared with November 2007. Chrysler's situation was especially bad. Its sales dropped 47%.

    Chrysler's financing arm, Chrysler Financial, has tightened lending terms for buyers and earlier this year, it announced it would no longer offer leases.
    While I am firmly opposed to the bailout (even more so than the bank bailout) "Let Obama deal with it" hasn't been helping at all. I've heard the phrase "hit the ground running" thrown around a lot during the transition. I hope the army of economic advisers Obama has been collecting produce something of value

  2. #2
    Klattu Verata Nicto
    LaMidRighter's Avatar
    Join Date
    May 2005
    Location
    Louisiana
    Last Seen
    07-21-17 @ 02:42 PM
    Gender
    Lean
    Libertarian - Right
    Posts
    30,534

    Re: Chrysler shuts down all production

    Quote Originally Posted by Kernel Sanders View Post
    While I am firmly opposed to the bailout (even more so than the bank bailout) "Let Obama deal with it" hasn't been helping at all. I've heard the phrase "hit the ground running" thrown around a lot during the transition. I hope the army of economic advisers Obama has been collecting produce something of value
    As do I. I am not even close to being a fan of Barak Obama or John McCain, but my country, it's people, and our economy come first. Good luck Mr. Obama, we ALL need it.
    Neither side in an argument can find the truth when both make an absolute claim on it.

    LMR

  3. #3
    Sage
    Khayembii Communique's Avatar
    Join Date
    Nov 2006
    Location
    Milwaukee, WI
    Last Seen
    Today @ 07:12 PM
    Gender
    Lean
    Undisclosed
    Posts
    7,900

    Re: Chrysler shuts down all production

    And so it begins.

  4. #4
    Norville Rogers
    Kernel Sanders's Avatar
    Join Date
    Jul 2008
    Location
    Pittsburgh, PA
    Last Seen
    07-23-12 @ 10:20 PM
    Gender
    Lean
    Undisclosed
    Posts
    3,730

    Re: Chrysler shuts down all production

    Quote Originally Posted by Khayembii Communique View Post
    And so it begins.
    Indeed - Chevy also stopped production on the Volt. One thing that I notice is that Chrysler is blaming the bad credit market - precisely what the bank bailout was 'intended' to fix. However, due to horribly vague language and a complete lack of oversight, the first of the Big Three looks like it just got shoved over the edge it was teetering on. I want to know who the ~20% who approve of Congress are and what the hell they approve of

  5. #5
    Sage
    Oftencold's Avatar
    Join Date
    Dec 2008
    Location
    A small village in Alaska
    Last Seen
    05-09-14 @ 12:53 AM
    Gender
    Lean
    Very Conservative
    Posts
    5,044

    Re: Chrysler shuts down all production

    Who needs to make something as messy as cars, when a little whining about how it's everybody else's fault that your company has been run into the ground will cause the government to bury you alive in money?

    Painful as it would be-- and believe me I have reason to be sympathetic to thoise whop would be affected most, these companies should be allowed to fail.

    Do you all realize, that there can now probably never be a new, improved car manufacturer in this country? The Government has effectively outlawed competition.

    What if they had taken this tack with horse breeders in the late 19th century?

  6. #6
    Klattu Verata Nicto
    LaMidRighter's Avatar
    Join Date
    May 2005
    Location
    Louisiana
    Last Seen
    07-21-17 @ 02:42 PM
    Gender
    Lean
    Libertarian - Right
    Posts
    30,534

    Re: Chrysler shuts down all production

    Quote Originally Posted by Oftencold View Post
    Who needs to make something as messy as cars, when a little whining about how it's everybody else's fault that your company has been run into the ground will cause the government to bury you alive in money?

    Painful as it would be-- and believe me I have reason to be sympathetic to thoise whop would be affected most, these companies should be allowed to fail.

    Do you all realize, that there can now probably never be a new, improved car manufacturer in this country? The Government has effectively outlawed competition.

    What if they had taken this tack with horse breeders in the late 19th century?
    The biggest problem is the financial institution bailout, since the precedent was set that companies can now argue that the impact of their loss will be as big as financial would, so they should likewise get a bailout. This will effectively never allow the market to correct itself as long as we keep injecting money into businesses that need to make some hard decisions and save themselves.
    Neither side in an argument can find the truth when both make an absolute claim on it.

    LMR

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •