GM Delays New Plant
Dec. 17, 2008
Both Chrysler and Ford are extending their usual planned holiday shutdowns.
Chrysler will close all 30 of its manufacturing plants for a month starting Friday. The company needs to match production with slowing demand and conserve cash. Tighter credit markets are keeping would-be buyers away from their showrooms, Chrysler said. Dealers are unable to close sales for buyers because of a lack of financing and estimate that 20 to 25 percent of their volume has been lost because of 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 and will not come back online until Jan. 19 or later. Ford said it is shutting down 10 of its plants for one extra week next month. Spokeswoman Angie Kozleski said the normal two-week holiday shutdown will be extended to Jan. 12 at all operating assembly plants except those in Claycomo, Mo., near Kansas City and the Dearborn, Mich., truck plant. Those two plants will return to work as normal on Jan. 5. Both make the new F-150 pickup truck, while Claycomo also makes the Ford Escape and Mercury Mariner. Ford will also extend the shutdown at some engine, transmission and parts stamping plants, or shut portions of them to match production cuts at the assembly plants. The companies blame sluggish sales. Chrysler dealers said they have willing buyers but can't close up to a fourth of the deals because of the credit squeeze. The automakers are awaiting word about promised help from Washington. GM and Chrysler have said they'll be out of money to pay bills in a matter of weeks. Meanwhile, GM said it will delay construction of a new Flint, Mich., engine factory tied to one of its most important turnaround projects, plug-in models.
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- http://www.thebostonchannel.com/print/18301870/detail.html