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Chrysler to Idle All Production for At Least One Month

Chrysler will idle all its manufacturing operations at the end of the shift 19 December, and impacted employees will not return to work any sooner than 19 January 2009, according to a statement issued by the company today.

Chrysler said that it was taking this action due to the continued lack of consumer credit for the US car buyer and the resulting dramatic impact it has had on overall industry sales in the United States. Chrysler says that it is working to keep production and dealer inventory aligned with US market demand.

The company said that during a recent meeting at its headquarters, its dealers confirmed that they have many willing buyers but are unable to close the deals, due to lack of financing. The dealers have stated that they have lost an estimated 20-25% of their volume because of this credit situation.

Comments

joooooookes

...aaaaaand they run out of money at the end of December.

HarveyD

joooooookes:

Most unionized employees will get 95+% of their average pay during this short term lay off. It's more like a paid extra month winter holiday. Many employees will take a liking to it quickly enough. It may have to be followed by a similar break every other month or so to keep the union employees happy. Closing 50% of their factories may be a much better idea, if Chyrsler want to avoid early bankruptcy.

No production and almost the same salaries to pay = large bails outs $$$ paid by tax payers.

Bankruptcy is the only way out for the Big-3. New (replacement) manufacturers will probably never sign similar contracts with unions or shift production abroad.

Wonder if the minimum wage legislation could not be combined with a 'fair' wage (2.0x to 3.0x max.)extension for car factory workers and (10x to 20x) for top managers?

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