Chrysler Shuttters Manufacturing Plants for at Least a Month
By Michelle Krebs December 17, 2008Chrysler will close all 30 of its plants for at least a month beginning at the end of the work
day Friday, in an effort to keep inventories of unsold vehicles from building due to slumping sales and to conserve cash. The automaker said workers will be called back January 19 at the earliest.
The company said it is closing plants for an extended holiday to keep inventories from building due to poor sales. "The continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales" forced the action, Chrysler said in a statement.
Two factories in Toledo, Ohio, that make the Jeep Liberty, Dodge Nitro and Jeep Wrangler will be closed until January 26. The Windsor, Ontario, plant that builds the Chrysler Town & Country and Dodge Grand Caravan minivans as well as a Detroit plant that makes the Dodge Viper will shut until February 2.
The automaker's sales plummeted 47 percent in November compared with a year ago. The company is nearly broke and is seeking a federal loan to stay afloat. The Bush administration is expected to announce Friday it is providing Chrysler as well as General Motors with loans.
Chrysler dealers told the automaker at a recent meeting at its headquarters that they have many willing buyers but they can't close the deals, due to lack of financing. The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation.
Photo by Chrysler
Chrysler's plant in Toledo that makes Jeeps will be on an extended holiday. The plant closes Friday and doesn't re-open until February 2.
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