Chrysler Shuts All 30 US Plants For One Month
From the Washington Post:
Chrysler announced today that it will close all 30 of its auto manufacturing plants for at least a month starting at the end of shifts on Friday as it tries to conserve cash and avoid bankruptcy amid plunging demand for its vehicles.
The company, the third-largest U.S. automaker, said in a statement that it is taking the action to bring its inventories more into line with reduced U.S. demand for new cars and trucks. It blamed its current difficulties largely on customers’ inability to obtain financing to purchase new vehicles and said tight credit markets were discouraging would-be buyers.
Chrysler said manufacturing operations would resume at the earliest on Jan. 19. Two factories in Toledo, Ohio, that make the Jeep Liberty, Jeep Wrangler and Dodge Nitro will be closed until Jan. 26, the company said. A minivan plant in Canada and a plant in Detroit that makes the Dodge Viper will remain shut until Feb. 2, Chrysler spokeswoman Shawn Morgan said.
The move essentially extends a traditional two-week shutdown period over the Christmas and New Year’s holidays. The two biggest U.S. automakers — General Motors and Ford — have also said they are extending their holiday shutdowns.
Chrysler’s decision follows a 47 percent drop in U.S. sales in November.
