NEW YORK (CNNMoney.com) -- Chrysler LLC announced late Wednesday that it is stopping all vehicle production in the United States for at least a month.

All 30 of the carmaker's plants will close after the last shift on Friday, and employees will not be asked to return to work before Jan. 19.

 

Chrysler blamed the "continued lack of consumer credit for the American car buyer" for the slow-down in sales that forced the move.

 

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At least the workers will be partially paid.

This doesn't come as much of a surprise, given the reasons they're citing, hard for ALOT of people to get approved for anything credit wise right now.

This will impact a lot of suppliers, manufacturers and a lot of jobs. No easy solution to this current mess.

This will impact a lot of suppliers, manufacturers and a lot of jobs. No easy solution to this current mess.

This is where most of the impact is going to be felt. I'm glad that our new company president, earlier in the year, had made the decision to get out of automotive parts production to go into another direction. If it wasn't for that and the new plant manager he sent we would have been real danger of shutting down.

I am assuming that the credit crunch they are referring to is the practice of buying a $10,000-20,000 car and putting it on a 60 to 72 month loan and paying 3-4-5 times more for the car through interest than what the car was worth.

 

Anymore you go to a car lot and they don't even discuss the price of the car but rather how much the car payment fits into your monthly budget. The longer to them the better.

Isn't Toyota in Georgetown doing something similar? Like a 3 or 4 week "Holiday" closing?

Isn't Toyota in Georgetown doing something similar? Like a 3 or 4 week "Holiday" closing?

 

I believe they retool the plant a couple of times a year. This is planned far in advance. I think they do one of them to coincide with the Holiday season. Someone correct me if I am wrong, but I thought I remembered hearing that when I toured the Georgetown facility a while back.

I am assuming that the credit crunch they are referring to is the practice of buying a $10,000-20,000 car and putting it on a 60 to 72 month loan and paying 3-4-5 times more for the car through interest than what the car was worth.

 

Anymore you go to a car lot and they don't even discuss the price of the car but rather how much the car payment fits into your monthly budget. The longer to them the better.

 

And this is what a lot of the problems are about. What is the world coming to when we are in trouble because people are not borrowing enough money. What happened to saving and paying cash? The only long term debt should be your mortgage. Pay cash for everything else or go without!

And this is what a lot of the problems are about. What is the world coming to when we are in trouble because people are not borrowing enough money. What happened to saving and paying cash? The only long term debt should be your mortgage. Pay cash for everything else or go without!

 

I would add starting a business could need debt.

I am assuming that the credit crunch they are referring to is the practice of buying a $10,000-20,000 car and putting it on a 60 to 72 month loan and paying 3-4-5 times more for the car through interest than what the car was worth.

 

Anymore you go to a car lot and they don't even discuss the price of the car but rather how much the car payment fits into your monthly budget. The longer to them the better.

 

Banks are very extremely chosey with whom they give loans to these days - probably to the point now of going overboard. These new loan guidelines being used by the banks are greatly limiting the people that are able to purchase a new car. It really isn't practical (as another poster suggested) that all new car purchases be made only in cash. You do that and it'll completely destroy the auto industry and take down huge sections of the banking industry also.

I have absolutely no sympathy for the Cerberus Capital Management investors. Cerebus bought Chrysler a mere 19 months ago. If they didn't know what they were buying, shame on them.

 

Cerebus also owns a large stake in GMAC. Plus they own Bushmaster Firearms and Remington Arms.

 

Cerebus was the mythical 3-headed dog that guarded the gates of Hades. I guess that name came back to bite them in the butt.

Isn't Toyota in Georgetown doing something similar? Like a 3 or 4 week "Holiday" closing?

 

Yes they are. They are having their employees take 2 (I think) days off unpaid.

I lived in Michigan in the mid 80's when times were very good to both management and the unions. I did not hear a lot, nor see a lot of talk about quality of production. It was all about making as much money as you could as fast as you could.

 

I personally tried to buy USA, but spent far too much time in the repair shop. I think both the UAW and management got too greedy and forgot what we need most of all.....AN AMERICAN PRODUCT WE CAN BE PROUD OF AND COUNT ON!!!

 

 

This has been coming for years. After 8 plus years of driving a Toyota, I cant wait for it to actually break down so I can buy another Toyota. Dont see that happening for a couple more years.

 

As a country, we are beating ourselves by the inability to provide a qualilty product. Trust me, build it and they will come! Do not run yourselves into the ground and then ask the government (in its weakest moment) to bail you out.

 

I guarantee you, our ancestors would have scratched their heads over any "bail out."

 

My parents saved and bought a car for cash and didnt buy another till they could afford one. They always bought American which, in those days, held the test of time. Whatever happened to that?

Edited December 18, 200817 yr by Beechwoodfan

I lived in Michigan in the mid 80's when times were very good to both management and the unions. I did not hear a lot, nor see a lot of talk about quality of production. It was all about making as much money as you could as fast as you could.

 

I personally tried to buy USA, but spent far too much time in the repair shop. I think both the UAW and management got too greedy and forgot what we need most of all.....AN AMERICAN PRODUCT WE CAN BE PROUD OF AND COUNT ON!!!

 

 

This has been coming for years. After 8 plus years of driving a Toyota, I cant wait for it to actually break down so I can buy another Toyota. Dont see that happening for a couple more years.

 

As a country, we are beating ourselves by the inability to provide a qualilty product. Trust me, build it and they will come! Do not run yourselves into the ground and then ask the government (in its weakest moment) to bail you out.

 

I guarantee you, our ancestors would have scratched their heads over any "bail out."

 

My parents saved and bought a car for cash and didnt buy another till they could afford one. They always bought American which, in those days, held the test of time. Whatever happened to that?

 

I agree with your post BUT -

 

Ford and GM now produce some cars that are equal to or surpass the Japanese/foreign cars in quality. Not my opinion that is fact through JD Power and the car mags.

 

Malibu

Cobalt

Lucerne

Lacrosse

Full-size Trucks/SUVs

 

Fusion

Taurus

Explorer

Mustang

Full-size Trucks/SUVs

 

Almost any Volvo or Mazda.

 

They also make more fuel efficient cars/hybrids than the foreign automakers.