Chrysler Takes Drastic Measure
|
December 17, 2008
| By:
Comments (
2
)Chrysler announced today that they will be closing all 30 of their manufacturing plants for a month. The move is meant to match their production numbers to slowing consumer demand in hopes to save money.
According to an AP story, Chrysler blames the credit crunch for keeping potential buyers from their showrooms. Dealers are also losing sales due to the lack of financing options for consumers and estimate that 20-25% of their volume has been lost because of the current credit situation.
Operations at all 30 plants will be suspended at the end of the day Friday, December 19th and will remain offline until January 19th; at the earliest.
The move comes as Chrysler claims it is close to the minimum level of cash needed to run the company, and if their production levels stay the same, they won't be able to pay their bills after the end of the year.
Share this Article:
« New Device Jams Teens' Cell Phones While Driving | Main | New Study - Bright, Colorful Cars Involved in Fewer Accidents Than Dark Cars »
I agree Troy. Seems like these short term fixes will end up hurting them even more in the long run.
I think this is not the answer to the auto problems. Right before Christmas is not good for people also. They need to figure this out soon before more goes wrong.