Author Topic: The beginning of the end? (Read 256 times)

Midlife · « **on:** December, 17, 2008, 03:24:36 PM »

From the Washington Post:

Chrysler closing all 30 plants for one month
The Associated Press
Wednesday, December 17, 2008; 5:21 PM

DETROIT -- Chrysler says it will close all 30 of its manufacturing plants for a month starting Friday.

The company needs to match production to slowing demand and conserve cash.

Tighter credit markets are keeping would-be buyers away from their showrooms, Chrysler says. Dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to the credit situation.

Chrysler claims it is nearing the minimum level of cash it needs to run the company and will have trouble paying bills after the first of the year.
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Operations at the 30 plants will be idled at the end of shift on Friday, Dec. 19, and will not come back online until Jan. 19, 2009, or later.

Fast68back · « **Reply #1 on:** December, 17, 2008, 06:27:33 PM »

I saw an article today that started with GM postpones opening new plant, which makes on think, WTF, why even break ground on a new plant if you know your hurting for cash? Its not like this happened overnight.

Midlife · « **Reply #2 on:** December, 17, 2008, 06:31:08 PM »

Quote from: Fast68back on December, 17, 2008, 06:27:33 PM

I saw an article today that started with GM postpones opening new plant, which makes on think, WTF, why even break ground on a new plant if you know your hurting for cash? Its not like this happened overnight.

Wasn't that their new plant in China that they are postponng opening?

Just read more about the Chrysler closings...all of the big 3 have typically closed down two weeks for the Holidays: they are simply extending the down time to conserve cash.

AzPete · « **Reply #3 on:** December, 17, 2008, 08:15:15 PM »

And I keep hearing about Ford not needing money and can make it through next year just fine. They still seem to be active in the talks too.

68EFIvert · « **Reply #4 on:** December, 17, 2008, 10:45:43 PM »

Nobody wants to be left off the freebie wagon that is the tax payer do they? I say let them file bankruptcy and renegotiate some of the poor negotiations they have done for the past 30+ years. Sometimes the best solution is not always the best for option "right now".