CHRYSLER PLANT CLOSURES: All 30 Plants Closing For One Month

DETROIT — Chrysler LLC said Wednesday that it is closing all 30 of its manufacturing plants for a month starting Friday as it seeks to counter the most severe downturn in U.S. auto sales in more than two decades. By extending the traditional two-week holiday shutdown period, the struggling Auburn Hills, Mich.-based automaker can adjust production to slowing demand and conserve cash.

In a statement Wednesday, Chrysler said tighter credit markets are keeping would-be buyers away from its showrooms. The company said its 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. Sales in November slid 47.1 percent.

Chrysler and larger rival General Motors Corp. have warned they could run out of cash within weeks without financial aid from Washington. Chrysler has said its cash will drop to $2.5 billion by Dec. 31, the minimum needed to meet payroll, pay suppliers and run the company. It would have trouble paying bills after the first of the year.

Operations will be idled at the end of the shift on Friday, Dec. 19th shift. the earliest plants will reopen is Jan. 19, 2009. A few plants will reopen on Jan. 26.

Chrysler is seeking $7 billion in government loans as it tries to survive the recession and the worst U.S. auto sales slump in 26 years. For the first 11 months of this year, Chrysler sales are down 27.7 percent to 1.4 million vehicles from 1.9 million for the same period last year.

With the U.S. sales slump expected to continue into January, traditionally one of the slowest sales months of the year, the company has little revenue coming in and must pay suppliers $7 billion every 45 days.

In the case of some plants, such as the Toledo Jeep plant in Ohio, operations will resume January 26, but with one less shift. More than 750 workers are being cut on the second shift at the Toledo North plant, said Dan Henneman, United Auto Workers union official for Local 12.

Chrysler's Jeep Liberty, Nitro and Wrangler are assembled at the Ohio plants. Sales of the company's Jeep-brand vehicles fell 41.8 percent in November to 20,302 units.

Henneman said 755 people worked the shift. About 550 workers took a retirement package and 200 will be indefinitely laid off.

General Motors Corp. and Ford Motor Co. have announced extensions of their holiday shutdowns as well.

Chrysler is privately held, with 80.1 percent owned by New York private equity firm Cerberus Capital Management LP.

Comments

[uvymopkq]

They should make it three months....­.they make junk.

[RJII]

the wealth - 350

the average Schmo - 0

[rich misty]

Republicans everywhere are cheering their GOP Christmas, it has been so long since they gathered around the fire of American institutions burning to sing the praises of the GOP/Bush/Hoover economy

[rasit]

Especially the ones in Alabama and Tennessee!!!

[T-Bear]

I am not from Michigan. I live in Texas and our economy is largely based on the oil and gas industry. My father was a plant operator until his death, so I understand how a single industry can affect the entire economy of an area. I don’t understand how we can chant for energy independence but we want to depend solely on foreign powers for our manufacturing. New economies are growing and becoming power houses based on the productivity of their goods. We no longer make anything and we now have found out that pushing worthless paper only kills our economy.

The argument that these companies have made bad decisions is valid; however, there are real people that will suffer based on decisions that they had nothing to do with. I am angry and mad because my tax dollars are going to companies that have lied and stolen from us but I would rather keep people who want to work employed verses paying for welfare benefits. I am angry because my neighbors, who have worked hard all of their lives, are losing their jobs and their dignity. They did not go out and get a sub-prime loan; they were laid off and with that went their families’ security and viability.

Continue to root for the foreign companies and spit on an industry that helped to create our countries wealth. Go ahead, but when other industries are hit; maybe even yours, then maybe you too will show a little compassion.

[Arthur954]

What really worries me about Chrysler is that not even Daimler - Mercedes could get their top management to perform well. The Germans are the most talented people, and with great taste, and not even that was enough to make Chrysler executives do a good job.

I wish the US government would put DIFFERNT people in charge, maybe have the upstart small US companies like Tesla, Quantum and others use the existing Chrysler production infrastructure ...... if the US had a Secretary of Industrial Policy these things could be coordinated.

Lets think out of the box and try to use the Chrysler infrastructure and workers, under different leadership ........ if we lose our manufacturing, how is the US going to make a living in the future ? lets not give up, there are many people and families that are going to suffer if everything closes down

[StellaDuBois]

Daimler did nothing but gut the company. That's a big part of why Chrysler's behind the eight ball now.

[nadine54]

Well said! Haven't we learned ? As soon as we are dependent on foreign companies for transportation THEY will manipulate the market and we'll undoubtedly have to pay higher prices....­.sound familiar? Not to mention the job loss in a time of economic peril ...eventua­lly those people will have to collect unemployment and maybe even welfare; Have we considered the ensuing bankruptcy rates and home foreclosures as a result of joblessness? At the end of the road the government and the taxpayers will be on the hook!

And one final comment...­heaven forbid we get involved in ANOTHER war, Are we going depend on foreign powers for transportation , jeeps, tanks, etc...... In giving away our auto industry , we are giving them tacit approval in deciding what kind of quality to offer the American consumer..­.for now , they are compelled to offer a good product because of free market competition with the American auto industry .... with our market non- existent, they don't have an incentive.­We are trading our dependence on foreign oil for dependence on foreign transportation!!!
WAKE UP PEOPLE!

[kstuff]

KarenT,

I'm seriously considering getting an angry mob together. Where's the UAW and their infamous protests now? They must know something that we don't. Perhaps Bush is bluffing after all.

[KarenT]

Not that i think it will help but I feel I need to do something as my husband and I will lose all of our income if GM and Chrysler are not bailed out and we do not work for the companies. I've already written to Carl Levin, Jennifer Granholm and Debbie Stabenow but they already understand the devestation. I'd like to write or call the White House tomorrow. Anyone ever do this? what is the best way to get a message to Bush? Again, I know he doesn't care but I guess I at least will feel like I tried.

[kstuff]

The ripple of mass unemployment has already begun.
I'm a family therapist.
This week, no less than three families experienced layoffs of BOTH SPOUSES in Detroit, Michigan. The famous quote no longer accurately depicts the whole story: "It's a recession when your neighbor loses his job; it's a depression if you lose yours."
Well, it's a catastrophe when an entire city loses it's jobs.
And a tragedy when an ENTIRE NATION of people stands-by and does nothing...

Merry Freekin' Christmas!

[KillTheMessenger]

So how much are you charging the unemployed?

:-)

[watchTVgetSTUPID]

Bush is holding GM and Chrysler hostage and threatening to execute them if Congress does not approve $350 billion more for Wall Street. And the kicker is he wants the next $350 billion to have no strings attached, just like the 1st $350B. If Congress agrees, then Bush will throw the auto industry a $14 Billion loan with strings attached.

ECONOMIC TERRORISM BY THE BANKERS WHO CONTROL POLITICIANS.

Regretably both parties are culpable but the GOP is playing the bad cop while the DEMs are playing good cop. Even Chelsea Clinton is in on the scam .... she got big money from the Hedge funds and not for her expertise in financing.

If Pelosi caves in then you know this is true from the results. If Pelosi refuses to cave in and insists on the same tough controls on the $350 billion for Wall Street, then there will be justice. But Obama will need to guarantee he will bail out the auto industry with reasonable negotiations after he is in office. Otherwise the big 3 will be sacrificed by Bush in a game of chicken.

[KarenT]

Can you source this? I can totally believe it but would love to see the source.

[KillTheMessenger]

So Bush is now responsible for GM and Chrysler losing money for a decade?

Wow... I know the man was responsible for a lot of things... but that's new even to me.

:-)

[watchTVgetSTUPID]

Why is saving our auto industry so unpopular with many people? Because the same radio stations that hyped everyone up on Iraqi WMDs are again promoting anger. Talk radio hosts raise their voice and get emotional as they mis-represent the UAW and auto industry.

For example, if you ever worked on the auto assembly line, then you would know you can not stop working for 20 seconds or your part of the job won't get done and there will be Hell to pay down the line as other workers will not be able to do their part. On the talk radio I hear about lazy UAW workers which is impossible when you are on the line.

This same talk radio media bias that brought you Bush, the Iraq war, the patriot act, now is attacking the very workers that believed their prior lies. Obama needs to regulate the media and make it free from the Bush evil doers.

[lorsavus]

As a Michigan resident I can see the devastation of the economy. Many people are unemployed and many more are terrified of losing thier jobs. The automoile industry is integral to the economy. Theses are very hard times.

[want2trustagain]

I can understand the devastation but I just lost my job the 14th of Nov. if I had been offered a cut in pay to keep my job and my BENEFITS i.e. insurance I would have jumped at the chance but I was told to just go and am paying over 300 a month just for Cobra coverage so forgive me if I just can't feel sorry for these greedy UAW workers. What they were making is the reason they have priced their selves out of business. If they want a bailout let the CEO's that run them into the ground give back what they stole.

[KarenT]

To KillTheMessenger and want2trustagain.

The State of Michigan is in financial straights so that's a pretty ignorant comment. The UAW has given many concessions and continues to. That is truly not the issue. The GOP would like you to think so. If GM goes down, a minimum of 10% additional jobs will be lost in this country...­not just Michigan and UAW workers. The advertising agency where my husband works (for Chrysler) has laid off thousands of workers in the last 3 years and more this week. My company relies on the Detroit auto companies for revenue (90%). If they go under, we have no income and we are just a small portion of non-UAW or non-GM/Chr­ysler/Ford workers affected.

[KillTheMessenger]

How about the state of Michigan bails out the automobile companies, then?

[mtflyer]

Too bad the cheap labor countries don't nuke each other. Of course the Repugs would never want to see that as their crooked outsourcing contributors would lose money and have to decrease their illegal campaign contributions.

[TrueIndy08]

I wish they would close them forever... their cars are piece of s h it..... the upper management is worthless.­...

wait for the Obama stimulus to kick in, and get a job with infrastruc­ture.... the BIG 3 are worthless

[darleneslee]

Who do you propose make our military equipment?

[KillTheMessenger]

How about somebody who is actually good at it?

[mbondr]

Upper class petulance. Cerebus can bail out it's Chrysler division with pocket change.

[KillTheMessenger]

But they don't want to. They want to bail it out with all of the change in YOUR pocket.

::-)

[detadman]

I've read your posts for some time. What, exactly, do you do for a living?

[GaDove]

I would think as part of the bailout by American tax dollars one of the 1st demands would be that not a single American lose a job while they are still operating plants in other countries. There should be a reasonable adjustment to UAW's pay. They can either have a job with decent pay, unemployemnt, or go look for another way to make a living. 2nd demand would be to fire the entire upper mgmt. and designers. Hire the Japanese or whoever is capable of taking these loser companies and making them profitable.

Not a single dime, not a damn penny better be given to the millionaire employees that are responsible for their dismal business decisions.

[CologneCitizen]

BMW is prolonging their christmas holidays in Germany and so is Mercedes Benz. It is a worldwide slow down in auto sales everywhere. Only question is which economy will start first to sell and buy again. No need to panic now. Anyway it is impossible for any company to pull exactly the right model from their sleeves which is low on gas and cheap at the same time. It takes time to develop tools and start producing. We might have a slight advantage in Europe as we have already some cars eating little gas. But all in all we are not that much ahead.

[KillTheMessenger]

"But all in all we are not that much ahead."

Only by a factor of two...

:-)