NEW YORK (CNNMoney.com) -- Chrysler LLC announced late Thursday that 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.
Chrysler ordinarily shuts down operations between Dec. 24 and Jan. 5 for the holidays. This closure would add roughly two weeks to that shut-down.
Chrysler would not say how many fewer vehicles would be produced during this shut-down.
"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 to November 2007.
Chrysler's situation was especially bad. Its sales were down 47%.
Chrysler's financing arm, Chrysler Financial, has tightened lending terms for buyers and, earlier this year, announced it would no longer offer leases.
Chrysler, Ford Motor Co. (F, Fortune 500) and General Motors (GM, Fortune 500) have approached Congress for aid to help them get through the current financial crisis.
A congressional effort to establish a stopgap, $14 billion loan program to help Chrysler and General Motors at least until next month collapsed last week.
The Bush administration has said it is working on a plan to throw the companies, which have said they are running out of the cash they need to operate, a lifeline using money from the $700 billion bailout approved by Congress in October, the Troubled Asset Relief Program or TARP. To top of page
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.
Chrysler ordinarily shuts down operations between Dec. 24 and Jan. 5 for the holidays. This closure would add roughly two weeks to that shut-down.
Chrysler would not say how many fewer vehicles would be produced during this shut-down.
"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 to November 2007.
Chrysler's situation was especially bad. Its sales were down 47%.
Chrysler's financing arm, Chrysler Financial, has tightened lending terms for buyers and, earlier this year, announced it would no longer offer leases.
Chrysler, Ford Motor Co. (F, Fortune 500) and General Motors (GM, Fortune 500) have approached Congress for aid to help them get through the current financial crisis.
A congressional effort to establish a stopgap, $14 billion loan program to help Chrysler and General Motors at least until next month collapsed last week.
The Bush administration has said it is working on a plan to throw the companies, which have said they are running out of the cash they need to operate, a lifeline using money from the $700 billion bailout approved by Congress in October, the Troubled Asset Relief Program or TARP. To top of page
Yep banks played everyone except for the elite like fools and aren't laon out the money they got from the government. Those fuckers are laughing their asses off right now at the stupid public. I wish someone would throw a shoe at those assholes...and connect!
What the hell does this mean? It's your country too. Why are you always like this. Like you are better than Americans. LOL You are a joke. You contribute nothing to this site and nothing to this country. You are a troll on society. You have benefited from this country more than you would ever know. In some countries if you said what you post you would be beheaded. In others they would send you to camps for "retraining".
JUST GO AWAY PLEASE. JUST LEAVE ALREADY WE DON'T NEED YOU.
this why the contracts have to be literally torn apart
let them collect for 4 weeks, like real world employees need to do.
the Company has no fucking options, their hands are tied
supply/demand
car companies need to reduce supply cause demand is crappola
operating at reduced expenses (not paying for all the materials to make the cars, energy costs etc....not sure what the percent of cost per car goes to labor...anybody know?) not making a product that the market is already oversaturated with
is better than continuing to oversaturate an already saturated market....they losing money on every car they make regardless.....might as well not make them and spend quite a bit less money not making um
home builders for instance have shut down all production for the most part but they don't have unions and shit to deal with
now they just selling off land and whatever homes they have left for deflated prices trying to gain some cash to survive and not have to go bankrupt
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err...well i misread your post doug
you are right the unions are stupid and part of the reason they heading for bankrupcy
car companies need to reduce supply cause demand is crappola
operating at reduced expenses (not paying for all the materials to make the cars, energy costs etc....not sure what the percent of cost per car goes to labor...anybody know?) not making a product that the market is already oversaturated with
is better than continuing to oversaturate an already saturated market....they losing money on every car they make regardless.....might as well not make them and spend quite a bit less money not making um
home builders for instance have shut down all production for the most part but they don't have unions and shit to deal with
now they just selling off land and whatever homes they have left for deflated prices trying to gain some cash to survive and not have to go bankrupt
----------
err...well i misread your post doug
you are right the unions are stupid and part of the reason they heading for bankrupcy
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