Posted on 12/17/2008 2:31:26 PM PST by TenthAmendmentChampion
DETROIT (Reuters) - Chrysler which has over 100,000 US employees is closing it's plants for at least one month as the company does it's best to save money and sell off existing stock. Earlier in the day Chrysler LLC's finance arm has told dealers it may temporarily stop loans used by dealers to stock vehicles because the retailers pulled money from a fund that helps finance them.
Chrysler Financial Chief Executive Tom Gilman sent letters to dealers, dated Dec. 12, that asked them to refrain from withdrawing large amounts from a "cash management account" used to finance the loans, a source familiar with the letter said.
Withdrawals from the fund, which have totaled more than $1.5 billion since July, have caused a drain on Chrysler's resources and could limit the company's ability to offer financing to dealers to buy vehicles, according to the letter.
Chrysler Financial said in a statement that it finances 75 percent of all vehicles shipped to U.S. dealers and continues to support its dealer network with "uninterrupted" wholesale financing. The letter said about $60 million a day is being withdrawn from the account, which is "well above our historical daily advances."
Chrysler dealers were paid a bonus if they kept money in the account.
Talk about potential bankruptcy at Chrysler, which is seeking federal loans to survive through March, has spooked dealers, who withdrew heavily from the account in the past few months.
Chrysler has asked dealers to only withdraw "what is absolutely necessary" from the fund, according to the letter.
Chrysler, which has seen sales fall 28 percent so far this year, is also facing pressure from some suppliers who were insisting on being paid in advance for goods.
Thanks Doughty, I always put a lot of credence in your thoughts. You think before you hit “Post” and I appreciate that.
That was nice of you. I appreciate it.
*** LARGEST ECONOMIC ATTACK *** in History UNDERWAY, with oil prices below $40
Today, with oil falling below $40, the attackers are losing almost a BILLION dollars a day.
Example: a barrel of North Sea oil has production costs of $135!
When did that happen?
Last I heard was 4 years ago, when they abandoned the experimental UAW-management cooperative and went for the old-school GM-UAW style contract.
http://www.saturnfans.com/Company/2004/contractdismantled.shtml
Seriously, I’m interested to know more about the history of the Saturn-UAW contracts if you have some insight for me.
When did that happen?
Last I heard was 4 years ago, when they abandoned the experimental UAW-management cooperative and went for the old-school GM-UAW style contract.
http://www.saturnfans.com/Company/2004/contractdismantled.shtml
Seriously, I’m interested to know more about the history of the Saturn-UAW contracts if you have some insight for me.
When did that happen?
Last I heard was 4 years ago, when they abandoned the experimental UAW-management cooperative and went for the old-school GM-UAW style contract.
http://www.saturnfans.com/Company/2004/contractdismantled.shtml
Seriously, I’m interested to know more about the history of the Saturn-UAW contracts if you have some insight for me.
Close permanently, who cares? Dodge truck, 5 factory recalls in 2 years. No more American cars or trucks for me or my corp.
Correct you are, I was misinformed and unaware they were under UAW contract.
Oh ok.
Sadly, they are. Would have been good if they weren’t, but I can’t imagine the UAW agreeing with GM on anything if any aspect of production in any branch remains un-unionized.
That’s how tyrants work.
Keep on FReepin’ on...
Oh ok.
Sadly, they are. Would have been good if they weren’t, but I can’t imagine the UAW agreeing with GM on anything if any aspect of production in any branch remains un-unionized.
That’s how tyrants work.
Keep on FReepin’ on...
Oh ok.
Sadly, they are. Would have been good if they weren’t, but I can’t imagine the UAW agreeing with GM on anything if any aspect of production in any branch remains un-unionized.
That’s how tyrants work.
Keep on FReepin’ on...
Took awhile for buyer/seller mexican standoff over home prices in Cali and Florida to finally have the sellers blink and now prices are correcting bigtime all over the nation.
Autos are a bit different, but soon it will be the same thing. Deals will be out there to be had. Advertised prices may not come down much, but when you get on the lot and start negotiating, you’ll be able to really put the screws to them.
Hell, I was a mechanic in the Army for a long time. I used to do everything auto myself, but I don’t have time now, too tired mostly - but if I can find non-crooks to do the work, it’s a wash. My time is worth a lot, I drive an old pickup but it’s good to go anywhere. And a harley.
I take it to the dealer, never touched it except installed a battery tender lead to the battery. Yeah the stealership rips me off a bit, but what can ya do? I remember a retired guy with a nice Vette at one of the longtime major retail shopping chains that also does tires and brakes - they told him he had to replace all 4 disc rotors. He didn’t know, or maybe didn’t care, I dunno. But it was expensive, and I couldn’t talk him out of it.
Twice.
True....if it costs too much time...I will not bother and take it to someone that 100% guarantees their work. But I knew that my friend was getting ripped off under this plan so I HAD to say something ;)
It's pay-to-play government anyway, and who in their right mind wants to play with these socialists?
“I handle Chrysler products at a Tier 1. I wonder if I’m even going to have a job in the morning or much longer.”
I’m so sorry to hear that your job is in danger.
My dad was a shop steward, but even he said that unions have become too strong. Many people in my area lost jobs at a paper mill because of their union.
Also our liberal govt. has so many regulations that the auto companies have to comply with, and then the liberal govt. won’t allow us to drill for oil in our oil-rich country which causes consumers to buy the smaller and cheaper vehicles.
Prayers for you and all workers.
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