Chrysler to Close All 30 Manufacturing Plants for One Month

[TheSarge]

NEW YORK —  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.

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.

General Motors Corp. said last week it will cut 250,000 vehicles from its first-quarter production schedule by temporarily closing 20 factories across North America.

The move affects most plants in the U.S., Canada and Mexico. Many will be shut down for the whole month of January.

http://www.foxnews.com/story/0,2933,468966,00.html

[Tess Anderson]

Yeah, I saw elsewhere that GM was thinking about filing for Chapter 11. I don't know, I think these both might be cries for help on their part, meaning they still want a massive government bailout. None of the Big Three will ever do well until they restructure or lose the UAW. Even if they close the plants in an *emergency*, the union workers still receive 95% of their pay for doing nothing.

[Jim]

Smart move for Chrysler.  Nobody bats .000.

[Chris_]

I see the success of the UAW continues to astound and confound.

[docstew]

heard the results of a survey today:  near 90% of the respondents would buy a car from a manufacturer in bankruptcy, as long as there is some backstop from the gov't for warranty purposes.

there goes that argument...

http://online.wsj.com/video/survey-americans-would-buy-from-bankrupt-auto-makers/FAC55AEE-6D86-4D6C-BC6D-1465DB260949.html

[Jim]

heard the results of a survey today:  near 90% of the respondents would buy a car from a manufacturer in bankruptcy, as long as there is some backstop from the gov't for warranty purposes.

there goes that argument...

http://online.wsj.com/video/survey-americans-would-buy-from-bankrupt-auto-makers/FAC55AEE-6D86-4D6C-BC6D-1465DB260949.html

the only problem with bankruptcy is its the death knell for the UAW

[thundley4]

the only problem with bankruptcy is its the death knell for the UAW

And how exactly is a death knell for the UAW a problem?

[docstew]

And how exactly is a death knell for the UAW a problem?

precisely!  since the unions view the companies as their enemy, it is time for the automakers to stop giving them aid and comfort.  remove the union's logistical support and resupply by getting the contracts cancelled.  fire all the shop stewards and promote those with seniority into vacant positions.  announce a new hiring program  to fill the new vacancies.  make it clear to all employees that the union's refusal to make concessions was the reason for bankruptcy.

[thundley4]

Has anybody considered that maybe it isn't that the Big 3 are too big too fail, but just that they are too big?  How many new cars can the market sustain year after year, counting imports and everything? I know that some people buy a new car every year, but I think most keep them 2-3 years or longer.  I prefer to buy a slightly used car myself, and let someone take that first huge depreciation of value.

[Chris_]

Has anybody considered that maybe it isn't that the Big 3 are too big too fail, but just that they are too big?  How many new cars can the market sustain year after year, counting imports and everything? I know that some people buy a new car every year, but I think most keep them 2-3 years or longer.  I prefer to buy a slightly used car myself, and let someone take that first huge depreciation of value.

I have kept most of my cars 10 years.  If you do regular maintenance there is no reason a car can't last 20 or more years -- even today's cars.

[Eupher]

I have kept most of my cars 10 years.  If you do regular maintenance there is no reason a car can't last 20 or more years -- even today's cars.

My 1993 Ford Taurus was designed to die within 6 years. Period. Nobody can convince me that pre-planned failure, or perhaps more accurately, refusal to address a huge design issue (the transmission) isn't part of the overall strategy, PARTICULARLY for U.S. automakers.

They purposely design junk. I am absolutely convinced of that.

FOR THAT REASON, and that reason alone, it will be a cold day in hell before I buy another U.S. car.

[Chris_]

My 1993 Ford Taurus was designed to die within 6 years. Period. Nobody can convince me that pre-planned failure, or perhaps more accurately, refusal to address a huge design issue (the transmission) isn't part of the overall strategy, PARTICULARLY for U.S. automakers.

They purposely design junk. I am absolutely convinced of that.

FOR THAT REASON, and that reason alone, it will be a cold day in hell before I buy another U.S. car.

The term is "planned obsolescence." It was prevalent in the early 80's (K car anyone?).

But I think you can extend the life of a car -- but I agree that the reason the Big 3 are dying is they can't do the one thing they should: make good cars that people want.
 

[Eupher]

The term is "planned obsolescence." It was prevalent in the early 80's (K car anyone?).

But I think you can extend the life of a car -- but I agree that the reason the Big 3 are dying is they can't do the one thing they should: make good cars that people want.
 

I was actually going to use that term, in fact I had written it in my post. But I deleted it because in my case, for this vehicle, it was more of a refusal for Ford to deal with a problem THAT THEY KNEW EXISTED rather than a more generic overall strategy.

When the freakin' windshield wiper motor died at just over 100,000 miles, that was the end. I won't even bore you with the rest of the laundry list of shit that went bad, beginning at 13,000 miles.

[Miss Mia]

Has anybody considered that maybe it isn't that the Big 3 are too big too fail, but just that they are too big?  How many new cars can the market sustain year after year, counting imports and everything? I know that some people buy a new car every year, but I think most keep them 2-3 years or longer.  I prefer to buy a slightly used car myself, and let someone take that first huge depreciation of value.

I think most people only keep a car for around 4 years.  That's why leasing (long term renting) has become so popular, people trade out vehicles every 3-4 years.

[MarshallLaw]

I think most people only keep a car for around 4 years.  That's why leasing (long term renting) has become so popular, people trade out vehicles every 3-4 years.

My current car will be 12 years old in February, my car before that was 14 when I sold it.


Of course, they're Hondas.

[Miss Mia]

My current car will be 12 years old in February, my car before that was 14 when I sold it.


Of course, they're Hondas.

You're not part of the majority of people then.  Most people trade in cars every 3-4 years.  That includes Hondas, that's why Honda updates their models every 4 years on average.