Chrysler shutting down all plants as of Friday
Results 1 to 12 of 12

Thread: Chrysler shutting down all plants as of Friday

  1. #1
    Not wearing pants. Array klutch's Avatar
    Join Date
    Jul 2006
    Watching as you shower
    Schwinn with tassles

    Chrysler shutting down all plants as of Friday

    "For a month." Yeah, we'll see.

    DETROIT (Reuters) - Citing a credit crisis and dwindling sales, Chrysler LLC on Wednesday said it would shut down all of its manufacturing operations from the end of this week for at least a month.

    The blanket shutdown marked a deepening of the financial crisis for the embattled U.S. auto industry and came as Chrysler and its larger rival General Motors Corp both seek to shore up cash as they seek a federal bailout they say they need to survive.

    Chrysler, considered the weakest of the Detroit automakers, made the announcement on its plant shutdown in a letter sent on Wednesday to its employees, suppliers and the United Auto Workers union that was also posted on its website.

    Chrysler said its dealers were getting car shoppers into showrooms but losing between 20 percent and 25 percent of those potential sales because of the lack of consumer financing for new car purchases.

    "As a result of the financial crisis, the automotive market remains depressed due to the continued lack of consumer credit for potential buyers," the automaker said in a statement.

    Separately, Chrysler said its finance arm could be forced to stop making loans dealers use to finance inventory because the dealers have been pulling money out from a fund that helps finance the floorplan loans.

    The shutdown by Chrysler will idle plants in the United States, Canada and Mexico producing vehicles for its Chrysler, Jeep and Dodge brands.

    The more than 30,000 Chrysler workers in the United States represented by the UAW receive nearly full benefits and wages during plant shutdowns, but labor costs represent only about 10 percent of the total cost of the average vehicle.

    By idling plants, Chrysler and other automakers can cut costs on inventory, components and related charges such as utilities for operating large production facilities.

    The moves also keep finished vehicle inventories from piling up on dealer lots and increasing the pressure for even greater discounting to consumers.

    GM said last week that it was cutting its first-quarter production schedule by 60 percent compared with the same period a year earlier.

    Privately held Chrysler is 80-percent owned by private equity firm Cerberus Capital Management.

    Chrysler's sales plunged 47 percent in November and were down almost 28 percent for the first eleven months of 2008.

  2. #2
    D.I.L.L.I.G.A.F. Array Deuce's Avatar
    Join Date
    Jul 2003
    Victoria, Bitchin' Columbia (B.C)
    '15 BMW F800GSA
    Quote Originally Posted by klutch_r View Post
    "For a month." Yeah, we'll see.
    Who the hell would buy a Chrysler anyway? The only decent vehicle they sell is the Mercedes built diesel van.
    Last edited by Deuce; 12-17-2008 at 06:59 PM.
    "Experience alone is not the great teacher; Experience has to be multiplied by intelligence to yield sustained progress." Phil Schilling

  3. #3
    Posing with conviction Array heisenberg9's Avatar
    Join Date
    Dec 2003
    anyone I can lean against
    I see good in this. The car manufacturers had wiggle room (even though they are in a downward spiral) to figure out a way of dealing with the next few months while people are freaking out and not spending. They wanted the government to pay the ticket but they do have the means by shutting down plants for a bit. People will be out of work but the company is dealing with the problem and not the taxpayer.

  4. #4
    Becoming Insane Array
    Join Date
    Jan 2007
    Good way of removing terrible products.

  5. #5
    ride a lot Array Maverik's Avatar
    Join Date
    Jun 2006
    Z1000 07, SV650 04, CBR600 87, KZ440 82
    I wish I was working for them, so I could take a last minute all-inclusive vacation or two. I hate going work these days.
    Last edited by Maverik; 12-18-2008 at 11:26 AM.

  6. #6
    Registered User Array SHANE's Avatar
    Join Date
    Apr 2003
    ya no kidding who buys one , although i drove a viper once that has mad power !!! most torque ive ever felt in a cage ..

  7. #7
    license to chill Array frontside5's Avatar
    Join Date
    Mar 2006
    R6, F4 stunter
    At least they're trying something.

  8. #8
    Swivel on it Array SkydiveSonic's Avatar
    Join Date
    Aug 2006
    Quote Originally Posted by SHANE View Post
    ya no kidding who buys one , although i drove a viper once that has mad power !!! most torque ive ever felt in a cage ..
    It should have with a 8 litre v10
    If you wanna say something, speak into the mic. It's right above my balls.

  9. #9
    Still defying gravity... Array Thumper 8's Avatar
    Join Date
    Aug 2003
    3 and 6 cylinders of fury
    Quote Originally Posted by SHANE View Post
    ya no kidding who buys one...
    People who are seduced by the new advertising campaign:


    aka Tony

    My WMRC/Pitt Meadows and other bike photos are at - follow on Twitter and connect on Facebook


  10. #10
    ninja machinist Array Darkcbr's Avatar
    Join Date
    Apr 2004
    RC-51, KX250
    Here's an interesting read:

    Chrysler & Small Town USA, a love story

    Once upon a time there was a company called Chrysler. Chrysler made cars. Popular cars that were made and sold in the wealthiest nation on Earth - the United States. Chrysler built factories in small towns that were glad to have the business. So glad that the local government subsidized most of the cost of building the factory, and whoever offered the best deal won the contract.

    So this small town starts doing extremely well. Chrysler is a very rich company and rewards its workers well by paying them well. Joe Employee takes his large paycheck and goes to the market to buy bread, shoes, and see a movie. Bob Grocer, who opened shop on the same day as the Chrysler factory is glad for Joe's business, and they greet each other by name.

    Joe's co-workers know how rich Chrysler is, and organize a union. "We're not going to work unless you pay us more money, let us work fewer hours, and in better conditions." Chrysler pays them more money, lets them work fewer hours, and makes sure the employees are safe, comfortable, and well cared for. Chrysler even pays them after they retire, so nobody needs to save. Newspapers write about how tense union negotiations are, but things work out in the end. Auto workers are among the highest paid factory workers in the world. It's a victory for the employees, the unions, and the working class in general.

    Because of all this, Chrysler's operating costs go up, and they charge more for their cars, but this is okay because all the automobile manufacturers are subject to the same problems - the UAW (United Auto Workers) makes sure that everyone who makes cars gets payed well.

    Things are fine for a while, but this becomes a problem when foreign automobile manufacturers come in and sell cheaper, more reliable cars. People start buying those "Jap" cars and Chrysler has to adjust. Looking at their costs, they see where they can cut corners, and one category comes up over and over again - the human capital.

    So Chrysler closes it's factory and goes where the labor is cheaper (not to mention where there are less stringent environmental laws). Mexico. It's is on the same land mass as the U.S. so they don't need to put anything on a boat to ship it from one department from the other. Parts can be made in the U.S., sent to Mexico for assembly, and then shipped back to the U.S. to be put in to cars. They get to say the cars are made in America, but large components of it simply aren't.

    Chrysler even goes to Japan to learn from Japanese workers, and to operate factories there. They even buy cars from Japanese auto makers to sell under the Chrysler label. Movies are made about this (like Gung Ho), and it's written about in business textbooks. For an entire decade newspapers write stories about how Japan could beat us at just about everything. They say things like "The Japanese have learned everything we taught them after WWII and improved on it. They work harder, and the average Japanese worker is more productive than the average American worker. Employees are much more loyal to the company, and they take any defects in the products they make personally."

    In the early 90's NAFTA - the North American Free Trade Agreement - is passed so that Chrysler doesn't have to pay import/export taxes on goods they ship between America and Mexico. Unions protest, but NAFTA passes, and lowers Chrysler's operating costs a little more.

    Back in the small town, without the factory everything starts to dry up. Joe Employee can't buy as much, so he buys cheaper bread, and waits a few months or years longer to buy shoes. He skips the movie altogether. Documentaries are made about this once thriving town and songs are written.

    Allentown - by Billy Joel

    Well we're living here in Allentown
    And they're closing all the factories down
    Out in Bethlehem they're killing time
    Filling out forms
    Standing in line

    Every child had a pretty good shot
    To get at least as far as their old man got
    But something happened on the way to that place
    They threw an American flag in our face

    Well I'm living here in Allentown
    And it's hard to keep a good man down
    But I won't be getting up today

    And it's getting very hard to stay
    And we're living here in Allentown

    Interestingly, a small town in Mexico starts doing well for itself. The working conditions aren't up to the American standards, but the Mexican's know that Chrysler can - and has - moved if market forces change, so they're greatful for the work.

    The circle of life starts anew south of the border.

    Mein Korporation: Increasing Globalization

    In a strange twist of fate, Chrysler is bought by a German company. DaimlerBenz, maker of the Mercedes Benz, buys Chrysler, and in keeping with the German fashion of making really long words out of smaller ones, names the company DamilerChrysler.

    Car enthusiasts aren't sure whether or not to remain loyal to the cars they grew up with, or buy another car not manufactured by a German company. When the new better looking, better handling, more reliable models come out, they get over it pretty quickly.

    Back in that poor, depressed town, a new mega corporation moves in to save the day. Wal Mart. They promise "lower prices" and to create dozens of new jobs. Some people applaud Wal Mart because it will create jobs and give them more for their money. Other people stidently oppose Wal Mart because it's the death knell for local business, and the jobs it creates are all minimum wage.

    Joe Employee who used to pride himself on being able to drive a late model Chrysler takes a job at Wal Mart and now has no other choice but to shop there too because it's the only place he can afford to buy anything. Back in town, Bob closes shop because nobody visits his store anymore.

    All the business capital that was pumped in to Small Town U.S.A. by Chrysler is sucked out by Wal Mart. Money isn't coming in anymore, it's going out. Chrysler sends its capital to Mexico, Germany and Japan. Wal Mart's suppliers send their capital to China. All the profits go to the same place they've always gone... Germany?

    In truth, no publicly traded company is owned entirely by one group. Even before the takeover, some of Chrysler was probably owned by German companies. Currently (as of year end 2003), 55.4% of the shareholders are in Germany, and 16.5% are in the United States. Interestingly, The Emirate of Kuwait a small nation in the Middle East between Saudi Arabia and Iraq, right on the Persian Gulf, a country that owns 10% of the world's oil reserves and with easy access to shipping lanes, owns 7.2% of DaimlerChrysler. That's The Emirate of Kuwait, not it's citizens, the country itself owns 7.2% of DaimlerChrysler.

    Something tells me DaimlerChrysler's interests don't really lie in making more fuel efficient cars.

    Robert X. Cringely, in his article "The China Syndrome" on IBM's selling of their PC business to a Chinese manufacturer Lenovo for much less than it's market value hits on a few points about globalization. Even though IBM doesn't own their PC business anymore, they do have partial ownership of the company they sold it to, and have opened a door in one of the largest potential markets in the world. One that is about to explode in a big way - China.

    Wal Mart (I don't know who owns them) was started by Sam Walton in a small town called Newport, Arkansas. Wal Mart now operates over 4,900 stores, and what might surprise you is that 27.6% of them are not in the United States. Wal Mart operates stores in Argentina, Brazil, Canada, China, Germany, South Korea, Mexico, Puerto Rico and the U.K. In fact, I just saw a BBC news report stating food retailers in Europe are selling 46% more than just 4 years ago. This growth is driven by non-food products, and Wal-Mart is leading the way.

    So when people talk about the declining dollar, the trade deficit, and other economic factors, I think they're taking a narrow view of things. Our business is, increasingly, not in dollars anyway. We sell things in British Pounds, and pay for them with the Chinese Yaun. I don't think many economists talked about the "trade deficit between New York City and Detroit Michigan," but we talk about the trade deficit between America and China. In this increasinlgy global economy, I don't see how one distinction is much more important than the other.

    So what happens to the people of America if less and less of the business of America is conducted in America? Well, like that small town, we buy fewer groceries, wear our old shoes a few more months, write songs, and make documentaries about the way things used to be.

  11. #11
    Supporting Sponsor/Vendor Array GSXRKK6's Avatar
    Join Date
    Jul 2008
    Prince George
    none :(
    Quote Originally Posted by SHANE View Post
    ya no kidding who buys one , although i drove a viper once that has mad power !!! most torque ive ever felt in a cage ..
    But they are super twitchy over 220km/h. My brother and I thought that the alignment was out, but the owner said no, they are like that because of the very wide tires. Or maybe it was the fine engineering.

  12. #12
    Behind the great firewall Array iamcanjim's Avatar
    Join Date
    May 2006
    Shanghai, China
    1998 Yamaha TRX850T, 1996 Honda Rebel
    One of the reasons that Chrysler was bought by Daimler (Mercedes et al) is that when it was purchased (late 90's) it had a massive war fund in the bank. Funny how it didn't have one anymore when Mercedes sold it.

    Mercedes also hammered Chrysler by insisting that many of the components on their small cars but in common with the components on Mercedes. This raised the price of things like PT Cruisers and lowered the price of things like B classes.

    Essentially Mercedes ended up sacrificing Chrysler and also ensuring that Chrysler's medium and small cars would be unappealing.

    I personally have always had a love/hate relationship with Chrysler. When the Neon came out in 1995 it was lighter and much more powerful than the Toyota Corolla and Honda Civic (in fact, 2008 was the first year a civic had more stock hp than a base Neon from 1995).

    Then the head gaskets started failing. Turns out it was a minor engineering error, but it killed the rep of the Neon. That and the rattlyness.

    Seems like that is the story with every modern Chrysler car. Excellent ideas let down by crappy engineering and cost cutting in the interior.

    If they could have 'gotten it right' a few times maybe people would like their stuff better and they wouldn't be in this mess.

    Right now the Dodge Caliber SRT4 has 300 hp and costs about 26,000 cdn. Nothing else sold right now can touch that performance for that money.

    However, no one wants to buy it. I would be afraid all the time of what would go wrong next.

    Chrysler in the 90's and 00's reminds me of AMC in the 70's and 80's. Awesome ideas, great prices, lousy marketing and terrible execution.

    Hopefully if Chrysler goes down the tubes someone will rescue the Jeep division and the trucks and minivans. The four cylinder engines are already in use by Hyundai and Mitsubishi, so they will live on. Perhaps one of the Japanese companies will pick up the Ram and the 5.7 and 6.1 L hemi engines.

    An interesting fact. The slant 6 engine, designed in the 50's became the 2.2 L four cylinder used in a zillion k cars which became the 2.0 SOHC used in the neons which used to create the 1.6 L DOHC which was sold to Rover. When Rover was purchased by BMW, BMW kept the engine which still powers the Mini Cooper.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts