Chrysler Shutting Down All Plants

[toasty]

http://www.bloomberg.com/apps/news?p...22w&refer=home

Jaysus

Starting to rethink that new Jeep purchase. Hope there's a company around to do warranty service if anything goes wrong...

[MJDub]

Re: Chrysler Shutting Down All Plants

Don't get that Jeep.


Just saw Velshi on CNN and he was saying that because the parts suppliers are working on such thin margins, and because the same suppliers give parts to all 3 companies, this could start a catastrophic cascade effect.

[toasty]

Re: Chrysler Shutting Down All Plants

Don't get that Jeep.

Too late:

http://www.mercuryserver.com/forums/showpost.php?p=684131&postcount=14

[day_for_night]

Re: Chrysler Shutting Down All Plants

^
|
sounds like he already bought it!

I'd love to see GM, Ford, and Chrysler all spun off into smaller companies. To have such concentrated risk in having so many employees work for these huge corps is problematic in such a tough industry. Smaller companies would ensure that if one or two go under, its not the end of the bloody world like it would be if GM closed its doors tomorrow.

[runningman]

Re: Chrysler Shutting Down All Plants

yes it will be. What do you think Toyota and everyone else will do to their wages once the big three go under?? They will slash them harshly. Remember their is a famous phrase here in the Motorcity area

"Union don't make unions, corporations make unions."

If the big three are set to fail then I am sure we are on our way to a systemic crisis.

Nice Jeep Toast!!

[day_for_night]

Re: Chrysler Shutting Down All Plants

yes it will be. What do you think Toyota and everyone else will do to their wages once the big three go under?? They will slash them harshly. Remember their is a famous phrase here in the Motorcity area

"Union don't make unions, corporations make unions."

If the big three are set to fail then I am sure we are on our way to a systemic crisis.

Nice Jeep Toast!!

christ, read what i wrote. i said they should be spun off (ie. broken up into different companies based on division) so that if one of the SMALLER companies goes under it won't be the end of the world like it WOULD be if GM closed its doors. if GM becomes: Chevy, General Motors, Pontiac, etc etc there is reduced risk should a single one of those fail.

[ddr]

Re: Chrysler Shutting Down All Plants

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.
The company ordinarily shuts down operations between Dec. 24 and Jan. 5. This closure would add roughly two weeks to that shutdown.

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

[Miroslav]

Re: Chrysler Shutting Down All Plants

http://www.bloomberg.com/apps/news?p...22w&refer=home

Jaysus

Starting to rethink that new Jeep purchase. Hope there's a company around to do warranty service if anything goes wrong...

They'll be around. As ddr pointed out, they're basically just extending holiday break. Hell, we're doing the same thing and we make jets. Back during the last recession, my company did a seven-week furlough for everyone. They'll be around because they will be bailed out by the government.

If the big three are set to fail then I am sure we are on our way to a systemic crisis.

I would argue that whether they fail or not (which they won't), we are already well along in a systemic crisis already.

[FM]

Re: Chrysler Shutting Down All Plants

it's like I have a sense that this will get averted somehow...maybe not completely, but it will...

...yet the historic, unexplainable collapses and ramifications are just still about waiting to happen...

[Miroslav]

Re: Chrysler Shutting Down All Plants

the government already said that one way or another they will step in and save them. even if Congress doesn't, they will just do it through the Treasury's expanded powers.

[FM]

Re: Chrysler Shutting Down All Plants

but it makes you wonder...giving them the minimal asking right now would potentially delay the inevitable based on the sqwaking of how much they burn through the cash...

[Miroslav]

Re: Chrysler Shutting Down All Plants

but it makes you wonder...giving them the minimal asking right now would potentially delay the inevitable based on the sqwaking of how much they burn through the cash...

Well, they will definitely have to slim down production scope and they will probably end up merging with another auto company to survive long term.

[toasty]

Re: Chrysler Shutting Down All Plants

They'll be around. As ddr pointed out, they're basically just extending holiday break. Hell, we're doing the same thing and we make jets. Back during the last recession, my company did a seven-week furlough for everyone. They'll be around because they will be bailed out by the government.

As a Jeep guy, I guess the other good news is that the Jeep brand happens to be one bright spot for Chrysler, so I hope/suspect that if there was some sort of reorganization, they'd find a way to salvage it.

[Platinum]

Re: Chrysler Shutting Down All Plants

Lets put this propaganda into perspective...

I worked for Chrysler LLC for 3 years and finished with them in April of this year.

Chrysler comes out and says all of there plants are shutting down for 1 month... every single December every plant shuts down for 2 weeks for Christmas break.

Last year (2007) at this same time they shut down almost every plant for at least 3-6 weeks in Nov / Dec / Jan besides the 2 week Christmas holidays, some plants were shut down for almost 2 months of this 3 month period. All because they dont have the demand for the amount of vehicles these plants are producing, they have to cut back.

When these plants are going at full throttle vehicles are forced down dealership's throats. It is insane the amount of day supply that sits on dealership lots due to over production at certain times.

I think this is just a way for Chrysler to cry for some of the bail out money. The fact is they have these very technologically advanced plants that can produce at a very efficient rate when at full production. Too efficiently when basing it against the actual need for there vehicles.

People not having the ability to qualify for financing is the core of the problem today.

Cheers

[Erik Mitchell]

Re: Chrysler Shutting Down All Plants

^ Thanks for the post. I'm a little curious why they don't just downsize a bit and work consistently throughout the year?

Looks like they're only suspending production for a month for now... No reason to even make the news imo. Oh right, they want bailout moneys