Chrysler to shut down plants for a full month
It's no secret that Chrysler is in the fight of its life, and the Auburn Hills automaker is pulling out all the stops to keep the lights on -- even if it means closing the doors. Chrysler is shuttering all of its plants for one month, beginning December 19. In a short release to the media, Chrysler blamed the continued credit crunch as the main reason for the shutdown, and is trying to better-align its vehicle stock with customer demand. Dealers have notified the Pentastar that they've got plenty of perspective buyers, but an astonishing 20-25% of customers are unable to obtain financing. Ouch. On the bright side, Chrysler plant workers will have a really, really long Christmas break at 95% pay, which can't be too horrible.Chrysler's move is far from unprecedented, though, as GM announced on Monday that it would be cutting production by 250,000 units in Q1 2009. GM has also delayed production of its Flint engine plant. Toyota has also delayed plans to open its unfinished Mississippi plant, and Mitsubishi is closing its Illinois plant for seven weeks. This is one depressed automotive market, and Chrysler may be getting hit worst of all. Hit the jump to see Chrysler's mini-release for yourself.
PRESS RELEASE
Due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States, Chrysler LLC announced that it will make significant adjustments to the production schedules of its manufacturing operations. In doing so, the Company will keep production and dealer inventory aligned with U.S. market demand. In response, the Company confirmed that all Chrysler manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009.
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 dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation.
The Company will continue to monitor the production schedules of its manufacturing operations moving forward.
Reader Comments (Page 1 of 4)
Jon Hervé 6:34PM (12/17/2008)
Well, they finally found a way to stop making crappy cars.
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Mobius_1 7:24PM (12/17/2008)
Although they still haven't found a way to make money.
noz 8:57PM (12/17/2008)
Well said....but only for a month? It'd be sweet if they just shut down. Lot's of resources saved.
Don 9:15PM (12/17/2008)
And the workers found a way to get paid 95% while the lights are out...wish I had that job.
SimbaDogg 10:46PM (12/17/2008)
@ Don
seriously...for a second i was feeling kinda bad for them. i do for the long haul, cuz eventually a lot of them will have permanent pink slips. but getting 95% of your pay over the holidays..thats good money. if i was getting 95 cents on the dollar for not doing ANYTHING, you better believe i'd be putting a new resume together over the holidays...or even looking for side work so i could make supplemental income (think bill murray in kingpin)
Spiel 7:50AM (12/18/2008)
But where will be get cheap and horrible rental cars that makes us look forward to getting back in our own cars if Chrysler goes? Oh well, I guess GM will take over :-)
Seriously though, why don't they just extend the closure to...hummm...indefinitely.
White collar workers who make more in other industries are being laid off in the masses, some with, some without severance. But for these guys to get 95% while setting at home is insane.
iCameiSawiConquered 6:35PM (12/17/2008)
This mess of a company should not be saved. Sell the assets and shut down. Stop wasting our money--this company will never be saved no matter how many gazillions it is given to it. Enough.
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Todd 6:37PM (12/17/2008)
Hmm a whole paid month off does sound nice, but spending that time worrying how much longer you will have a job doesn't.
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Dave S 7:37PM (12/17/2008)
What do you mean? They have a month left. Simple.
parazitu22 7:54PM (12/17/2008)
They are doing this for 2 reasons, to show congress how badly they need aid, and to pressure them into doing it faster. And 2, to show the american people that while the workers won't be working, they are still getting paid, thus to shed some bad light on U.A.W. While this is definitely a bad thing if you are a worker there, at least you get some paid time off this holiday season.
LeMuRfArT 6:51PM (12/17/2008)
i still don't understand why the company has to pay the workers when they aren't working.
they should hire temps. they would save all sorts of money
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Jon 11:47PM (12/17/2008)
At the least they should put them to work doing other stuff. Give the plants a good scrubbing down. Send them out to do some community service. Anything.
hyundaifans.com 10:02PM (12/17/2008)
That's probably the UAW ironclad clause again.........
Alex 11:25PM (1/11/2009)
Have you herd of the U.A.W.??
Mr. Blake 6:54PM (12/17/2008)
I don't think Chrysler will emerge from this economic mess, no matter what they do or how much money they get. I'm sure the quality of their product doesn't help a whole lot either.
Why do union workers think they need 95% pay when they don't work? They will not be contributing to the company, so the company shouldn't have to contribute to them. The automakers pay entirely too much to workers who are laid off or retired.
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Scorch 7:08PM (12/17/2008)
"Why do union workers think they need 95% pay when they don't work? They will not be contributing to the company, so the company shouldn't have to contribute to them. The automakers pay entirely too much to workers who are laid off or retired."
You must be unfamiliar with the way unions work.
scott 7:09PM (12/17/2008)
I knew this was coming.The company dosen't pay them 95%. They file for unemployment,collect what unemployment pays just like non-union workers do, and the company pays a supplement.When I was laid off it was $150.00.The company does NOT pay them 95% for staying home!As usual,sounds bites don't tell the whole story!
J C 7:14PM (12/17/2008)
95% pay and they're not producing anything?No wonder why they're going out of business.
Yes You can blame the unions.
So stupid I had to keep myself from laughing.What bums.
"Hey where's my taxpayer funded bailout?"Ask the stupid union bloodsuckers.
Know what the taxpayers are saying to the arrogant union leaders? F...
RLS 7:01PM (12/17/2008)
The other day someone wrote a letter to the editor in our paper suggesting that the government take over Chrysler and have the company only make vehicles for the military and the other arms of the government. I would add that they could also build ALL vehicles used by law enforcement throughout the country, as well as taxis and other fleet vehicles. Any ideas as to would this work?
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torpeau 7:16PM (12/17/2008)
If they were the only maker of taxis, police cars, etc., there would be no competition and little incentive for them to be cost-efficient.
Daimler should did a number on Chrysler, didn't they?