Chrysler to shut down all production

Chrysler to shut down all production

Chrysler shut down

It’s no secret that Chrysler is having to fight harder than its Detroit brothers for survival, and the American automaker is pulling out all the stops to keep the lights on even if that means closing the doors. Chrysler is shutting down 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 realign its vehicle stock with consumer demand. Dealers have notified Chrysler that they’ve got plenty of perspective buyers, but up to 25% of customers are currently unable to obtain financing. So Chrysler plant workers will have a really long Christmas break at 95% pay, which can’t be too bad.

Chrysler’s move is far from unprecedented, though, as GM announced on Monday that it would be cutting production by 250,000 units in the first quarter of 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.

Chrysler shut down

It’s no secret that Chrysler is having to fight harder than its Detroit brothers for survival, and the American automaker is pulling out all the stops to keep the lights on even if that means closing the doors. Chrysler is shutting down 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 realign its vehicle stock with consumer demand. Dealers have notified Chrysler that they’ve got plenty of perspective buyers, but up to 25% of customers are currently unable to obtain financing. So Chrysler plant workers will have a really long Christmas break at 95% pay, which can’t be too bad.

Chrysler’s move is far from unprecedented, though, as GM announced on Monday that it would be cutting production by 250,000 units in the first quarter of 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.

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