Chrysler shuts down all production

Close of business Friday will be the start of a monthlong closure of 30 U.S. plants. Company cites 'continued lack of consumer credit.'

NEW YORK (CNNMoney.com) -- Chrysler LLC announced late Wednesday that it 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.



http://money.cnn.com/2008/12/17/auto...ion=2008121717

 

Heard about this last night and did a double take. From the report I heard, it seemed like Chrysler is in a downward spiral.

 

A cousin of mine is pretty high up in Chrysler. Things are looking pretty bad. Now there is another discussion regarding a GM/Chrylser merger.

 

While things are bad it could also be a strategic move to push Congress to push the bailout through.....

 

From the article: "Chrysler blamed the 'continued lack of consumer credit for the American car buyer' for the slow-down in sales that forced the move."

As Chrysler so brazenly points out itself, *it* doesn't need the bailout... the credit for the American car buyer does.

This was hashed out at another thread a bit, but doesn't it make more sense to give the *buyer* the money instead of the maker in this case? Hm?

Those who would have a Challenger would then have a Challenger because they had the money. Chrysler doesn't fold, everyone's happy.

The one issue with the quote is this: "American car buyer." Does that mean an American buying a car? Or does it mean a buyer of an American car? Very important distinction, ya ask me. I'm sure they mean the former.

But it's the *latter* that's the problem. Americans *aren't* buying America. This sucks, of course, for the American car companies... among plenty of other industries.

However, when you hear that Honda is going to make 69% less this year, and Toyota stands to potentially lose 1 Billion dollars... The dearth of calls for bailouts for those two are deafening, yeah?

Quite frankly, there are too many car makers by far. Too many makes and models to choose, and so a Chrysler dying is not by default a bad thing. Nor would be another couple or three. The wake of that result would not lose jobs in the long run, but save the industry, perhaps even expand it.

In any case, I am still, and will always be, against any bailout of this particular American industry simply because they, indeed most Americans, unfortunately, have their heads up their posteriors. A hard lesson is to be learned here. So, if Chrysler dies, blame America. All of us. If it were *that dang important* then we wouldn't be buying BMWs, Hondas, etc. etc., in the first place, would we?

All of a sudden, NOW... it's that dang important?! Right. Ya (as a generic you, btw, no specifics here) weren't buying Chrysler before, what makes ya think you're gonna now because they're hurting?

Good luck on saving the Pentastar.

/Sorry Lee... they failed you. They failed us all. Way to go Daimler.
//GM's next.

 

lets hope this isnt a sign of things to come

 

The present circumstances are different but American automakers always close assembly plants during Christmas and New Years for a minimum of two weeks.

 

Gm Will Shut Down a Month and Ford For Two Weeks vs the Normal One.

Kc

 

Why keep plants open when you're sitting on a glut of inventory? GM is in the same boat, and following suit. This does not mean they are "probably done". It's a necessary and savvy political and business move. One of the few I'll give those dolts credit for.

It calls further attention to the fact that GM and Chrysler are on life support and it should grease the political and labor management wheels for loans and restructuring.

Where are all the global economy "experts" now. You know, the ones who declared buying American cars was insignificant to the domestic economy

 

Whenever people talk about the Chrysler, they fail to acknowledge the fact that Mopar has been run for a decade by and for the benefit of Mercedes. They act like this is the fault of "poor American management". I have heard many people saying that Daimler "saved" Chrysler.

The "merger of equals" was a sham. "Takeover" was a more appropriate term. I hold Daimler responsible for the state that Mopar is in today.

As in the name of the "merged" company, DaimlerChrysler always put Daimler (Mercedes) first and Chrysler second. When ever there were cuts in development budget, or job cuts to try to stem losses, it was always on the Chrysler side; nothing was ever done to detriment of Mercedes.

The LX platform and the Crossfire were old Mercedes hand me downs. Daimler executives are responsible for not developing a new small car for Mopar and giving us the Caliber instead , for the styling that pretty much everyone dislikes, and for so many huge SUV and trucks which were approved by Mopar's German overlords led by Dieter Zetsch.

Cerebrus has had control of Chrysler for 2 years and just picked up the pieces left in the trash by Daimler.

FACT: Chrysler reported its second best year in history in 1997 (the year before the "merger"), with unit sales of 2,886,981 worldwide, sales revenues of $ 61.1 bn and an operating profit of $ 4.7 bn

FACT: Chrysler had loss of about $2.92 billion, in 2007, the year Daimler dumped them.

I used to be a big Mopar fan. I still love the A-bodies from the '60s and '70s. Things were looking up for Mopar during the '90s. The "merger of equals" made me jump ship. But I will always remember you, Chrysler Corporation.

 

Spot on comments.

Chrysler has it worts, as does Ford and GM, but Daimler is equally as culpable. True, the Caliber although a better seller than expected, needs to be improved as do their mid-size sedans, which is coming. They are launching a new family of V6 engines, and have multiple planned new product launches.

Another thing on these plant closings as some here are so quick to want to drive the nail into this company's coffin. The plants normally close down for 2 weeks at this time of year, so essentially they are only adding 2 weeks to the down time. Ford is adding an extra week, and GM is doing similar things.

Moreover, the mereger talks between GM and Chrysler are for the financial side only, not the auto side.

 

Hey guys I just got done talking to a friend of mine and he told me that he heard on the news that Ford, GM, and Chrysler will be shutting down and locking their doors for a month. Any guess's how this might affect JOB 1 for the 010. If this is true than Chevy will be having a hard time as well with the maro.

 

Already being discussed:

http://forums.bradbarnett.net/showthread.php?t=475833

However I haven't read anything specific to GM and Ford.

 

Everytime I hear this I have to laugh a little. Ford, Chrysler, and GM are:

A) not locking their doors for a month. significant retooling, installation, pms, and other work will be going on the whole time. I work for a systems integrator that is scheduled to be in facilities throughout the next month.

B) all were already sheduled to be shut down for at least two weeks. This is the annual winter shutdown. I know at least one of these was scheduled to be closed from 12/19 to 1/5 already. So the month they are "locking their doors" is not as drastic as they are purposely trying to make it sound to the taxpayers.

C) they are really only adjusting their schedule by two weeks.

I am not downplaying the two week adjustment. It is very important and has huge ramifications, especially to non union suppliers whose associates may have to make sacrifices during this season that is supposed to be marked by joy. I am, however, amused at the amount of publicity the statement shutting down for a FULL month is getting. Compared to every other year they are shutting down two additional weeks. I truly hope it helps the companies make it.

 

Ya gota build cars that people want - how simple is that to misunderstand? A lot if you look at the entire American car market and how 'those guys' package the cars. Then you've got to build with quality parts and a quality mind set on the line. And the things that po##s us off the most are butthead dealers that are sharks and screw everyone that walks in the door or run a crappy service department with morons as service advisors.

I'm trading my '05 Focus in tomorrow at my Ford delaership. He's offered me a trade of $6200 - no tricks for any car on the lot - new or used. The local Honda guy offered me $3700; the other Ford dealer offered $4500, and the Lexus dealer offered $5500. Is it too hard to figure where I'll do the deal?

So many dealers are buttheads - and the jerks, well most of them, that run the car companies have never sold cars. Now that's being in touch with the American consumer - who is not nearly as **** stupid (read not period) as 'those guys' think.

 

Hopefully these Recent Challenges will wake up All Business that Customers want and expect a Lot for their Dollar. I hope Mother Ford will Listen More to the Needs of It's Dealers and Customers. It's no picnic for Us at the Dealer Level as well. If our Little Dealership Dealership survives this storm I plan on being a Lot more Vocal to the Powers that be.

kc

 

Merging threads, but will leave a link for a day . . .

 

At least there is some sense of humor out there.

 

Unfortunately Even Our Own Congress Perpetuates that Myth that Americans can not build a Quality Product as witnessed during the Bridge Loan Hearings. If it were my Decision I would Be Joining Forces with the Gm & Chrysler with an Ad Campaign to Counter the Image Issue of the Domestic Three.

KC