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Chrysler adjusts production

Chrysler Adjusts Production as a Result of the Deteriorating U.S. Credit Crunch

Auburn Hills, Mich., (Dec 17, 2008)  - Due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States, Chrysler LLC announced that it will make significant adjustments to the production schedules of its manufacturing operations. In doing so, the Company will keep production and dealer inventory aligned with U.S. market demand. In response, the Company confirmed that all Chrysler manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009.

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. The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation.

The Company will continue to monitor the production schedules of its manufacturing operations moving forward.

As a result of the financial crisis, the automotive market remains depressed due to the continued lack of consumer credit for potential buyers. Last week several automakers announced significant downward adjustments in production for the first quarter of 2009, and to make sure inventory remains aligned with market demand, Chrysler will also extend the holiday shut-down already in place.

Source: Chrysler Media Site

 

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