Chrysler closing all 30 plants for one month

KFYI Radio Phoenix ^ | Dec 17, 2008 | Unsigned

[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 The letter said about $60 million a day is being withdrawn from the account, which is "well above our historical daily advances."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.

[cherry]

my father had a lowly job, and he was regularly laid off for a week right after Christmas because his plant closed....it was not union and not high profile so of course, nobody cared back then....

most if not all of those employees will get to use their vacation or personal time and they still will carry their medical care......I am not worried about them.....

[norraad]

2009= take it out of gear and coast.