Chrysler Shuts Down North American Plants
Chrysler announced on Wednesday that all North American plants will be shut down at the end of production on Friday, December 19. “Impacted employees” won’t return to work before Jan. 19, according to a statement on the company’s Web site.
“Chrysler dealers confirmed to the company at a recent meeting at its headquarters, that they have many willing buyers for Chrysler, Jeep and Dodge vehicles but are unable to close the deals, due to lack of financing,” said a Chrysler statement.
It looks like the ongoing credit crisis and plunging sales (Chrysler’s sales fell 47.1 percent in November; the biggest drop of any carmaker) determined the company to drop an additional two weeks of production at the already extended holiday, which was planned from Dec. 24 through Jan. 2, to include Dec. 22 and 23. The shutdown affects 30 plants, including all assembly, powertrain, component and stamping operations.
The plant in Windsor, Ontario - which makes minivans - and the Detroit/Connor Assembly - which builds engines and Vipers - will close through the month of January. The two plants in Toledo will be shut down until January 26.
The Pentastar has 46,000 hourly workers, most of them in the United States, Canada and Mexico, a spokesperson said on the company’s web site, and all of will receive state unemployment benefits as well as supplemental payments from Chrysler during the layoff according to a union negotiated formula. Yet, these employees will not be receiving their regular income.
It seems that Chrysler is not the only automaker in fight for survival. General Motors, the biggest U.S.automaker is also idles production. According to the Associated Press, GM is halting construction of a factory in Flint, Mich., set to make 1.4-liter engines for the Chevrolet Cruze and the Chevy Volt plug-in electric car. Toyota has also delayed plans to open its unfinished Mississippi plant, and Mitsubishi is closing its Illinois plant for seven weeks.
Meanwhile, Chrysler LLC is waiting for federal rescue. Together with GM, the company asked for a combined $14 billion in federal aid in order to survive until March 31.