Post by evp5O on Dec 17, 2008 18:44:46 GMT -5
Chrysler Shutting Down
Posted Wed Dec 17, 05:20 pm ET
Posted By: Mark Vickery
Even in the current economic climate, today's Bloomberg report that Chrysler LLC -- the now privately held third of the Big 3 automakers (following the company's split from Daimler AG {DAI} last year) -- will be shuttering all of its plants for at least one month comes as something of a shock. Is the end of this company's ability to produce automobiles really so close at hand?
It's chilling, really. But the company reportedly saw a 47% decline in sales during the month of November, so it's clear management felt it was time for drastic measures. And Chrysler -- maker of Chrysler, Jeep and Dodge cars and trucks -- is on pins and needles awaiting a Federal bailout bridge loan along with General Motors (GM) and Ford (F), which has yet to reach fruition.
From December 19, 2008 until January 19, 2009 at the earliest (some plants are already planning on longer shut-down times), no Chrysler automobiles will be made. Period. While this can be understood in terms of reducing inventory at Chrysler dealerships around the country, is it any more likely new Chryslers are going to sell now that the company seems to be teetering on the brink of extinction?
Posted Wed Dec 17, 05:20 pm ET
Posted By: Mark Vickery
Even in the current economic climate, today's Bloomberg report that Chrysler LLC -- the now privately held third of the Big 3 automakers (following the company's split from Daimler AG {DAI} last year) -- will be shuttering all of its plants for at least one month comes as something of a shock. Is the end of this company's ability to produce automobiles really so close at hand?
It's chilling, really. But the company reportedly saw a 47% decline in sales during the month of November, so it's clear management felt it was time for drastic measures. And Chrysler -- maker of Chrysler, Jeep and Dodge cars and trucks -- is on pins and needles awaiting a Federal bailout bridge loan along with General Motors (GM) and Ford (F), which has yet to reach fruition.
From December 19, 2008 until January 19, 2009 at the earliest (some plants are already planning on longer shut-down times), no Chrysler automobiles will be made. Period. While this can be understood in terms of reducing inventory at Chrysler dealerships around the country, is it any more likely new Chryslers are going to sell now that the company seems to be teetering on the brink of extinction?