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Chrysler to idle manufacturing plants

Posted December 17, 2008

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— Chrysler will close all 30 of its manufacturing plants for a month starting Friday.

The company needs to match production to slowing demand and
conserve cash.

Tighter credit markets are keeping would-be buyers away from their showrooms, Chrysler says. Dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to the credit situation.

Chrysler claims it is nearing the minimum level of cash it needs to run the company and will have trouble paying bills after the first of the year.

Operations at the 30 plants will be idled at the end of shift on Friday, Dec. 19, and will not come back online until Jan. 19, 2009, or later.

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  • davidgnews Dec 17, 2008

    wildervb - I know what you're saying, but what about all of those companies that shipped out those jobs? The car companies have still done that in a lot of ways (Mitsubishi making cars for Eagle and Dodge, Toyota making cars for Geo, etc).

    Yes, I miss RCA and Zenith and the day we had real consumer electronics companies, but we sort of didn't keep up. Edwards Demming went to the carcos in the early 60s and was sumarily thrown out of their lobbies - then he went to Japan and look what happened after that!

    The carco management and labor unions have contributed greatly to this predicament in their own ways (sadly), with the employees and consumers in-between.

    Once again they prove that when elephants fight, the grass usually suffers.

  • OSX Dec 17, 2008

    Can't sell cars???? I wonder if it is because they are way overpriced for what you are getting? Maybe?

  • wildervb Dec 17, 2008

    I'm constantly reading about what losers our automakers are because they can't compete with the overseas manufacturers.

    Realy in the bigger scheme of things they're amazing survivers. What consumer products are still produced in the US? Toys - No, Electronics - No, Appliances - No, Furniture - No, Shoes - No... the list goes on.

    Industry after industry is undermined by foreign companies that get the help of their home governments when it comes to getting our market to open up while there countries remain closed to our products. Meanwhile, their employees get government supplied health benefits while we saddle our companies with this cost.

    We pay billions every year to keep inefficient farms in business, what wrong with giving our Auto industry a LOAN, to give them a chance of making it!

  • wildervb Dec 17, 2008

    "and exactly where in the Consitution are things a right? and I love pheasant under glass."

    What a dumb arguement! The constitution doesn't talk about the benefits of a prosperous middle class, therefore lets continue to undermine it.

    The sad thing is, the worse off our working class is, the worse off our economy is, the worse off we all become. Not sure why anyone would be cheering for the failure of one of our country's few remaining industries, but thats what I see on this message board day in and day out.

  • davidgnews Dec 17, 2008

    and did the government bailout Underwriter? Nope.

    Irrelevant as usual. I never supported any bailouts, either.
    Thanks for playing.

  • colliedave Dec 17, 2008

    At least Underwood made a good typewriter!

    and did the government bailout Underwriter? Nope.

  • davidgnews Dec 17, 2008

    If Chrysler cannot compete, it needs to go the way of the Underwood Typewriter Company.

    Are you still recycling that line? No surprise there.

    At least Underwood made a good typewriter!

  • slw36999 Dec 17, 2008

    I really don't see how the bailout would help. If they are burning thru cash at the rate they state, and the recession continues through most of next year, it seems unlikely that people are going to start buying loads of cars in the near future. People will replace cars as needed, but certainly not a spike in demand. New models, innovation take time, and that certainly doesn't seem to exist at this point. I do think people are keeping cars longer. I have a nearly 7 year old Chrysler Mini van and my husband has a nearly 6 year old Lexus we bought used and we have decent jobs. Many of my coworkers also have older cars, or at least one old and one newer.

  • colliedave Dec 17, 2008

    Yeah, lets break the back of labor for good, who needs a 40 hour work weeks, who needs vacation, who need health benefits and retirement income, we're competing against Chinesse and Indian pheasants we need to learn to live like them.

    and exactly where in the Consitution are things a right? and I love pheasant under glass.

  • wildervb Dec 17, 2008

    Yeah, lets break the back of labor for good, who needs a 40 hour work weeks, who needs vacation, who need health benefits and retirement income, we're competing against Chinesse and Indian pheasants we need to learn to live like them.

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