Chrysler Shutting Down

[Drucifer]

Chrysler to Close All 30 Manufacturing Plants for One Month

NEW YORK — Chrysler says it will close all 30 of its manufacturing plants for a month starting Friday.

The company needs to match production to slowing demand and conserve cash.

Tighter credit markets are keeping would-be buyers away from their showrooms, Chrysler says. Dealers are unable to close sales for buyers due to a lack of financing, and estimate that 20 to 25 percent of their volume has been lost due to 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, Dec. 19, and will not come back online until Jan. 19, 2009, or later.

http://www.foxnews.com/story/0,2933,468966,00.html

 

[Marlon_JB2]

Good. What's the purpose of producing product if sales aren't matching up to production?

 

[LibertyOrDeath]

I smell deep discounts in the not so distant future.

 

[Marlon_JB2]

I smell deep discounts in the not so distant future.

They're already deep. Very Deep. Like 35% off.

 

[jnaut]

I got my jeep with 0% financing in '04. Chrysler was arguably in trouble then-- in fact all American mfg's were with 0% financing. People don't realize how much of a financial burden it is for a car manufacturer to give me a car for five years and not make a dime of interest on it. They basically have to manufacture cars and won't see revenues for 5 years. And even the revenues they do see are at 0%. Imagine handing the keys of your car to a stranger, and getting $350 a month for five years.

 

[Marlon_JB2]

What kind of a credit score do you need to qualify for the 0% financing deals the manufacturers are always talking about?

 

[jnaut]

What kind of a credit score do you need to qualify for the 0% financing deals the manufacturers are always talking about?

I presume your credit score has to be good. Mine has always been on the higher end. And to qualify my statement above, the 0% was only offered on 'certain' models. It wasn't an across the board deal. At the time they were offering rebates on the 05 models which were just coming in the door, and 0% on the 04 models which they were desperately trying to get rid of.

I do recall that you had to 'qualify' for 0%.

 

[snowsport]

I bought my 03 on a 0% deal too. I don't recall having to qualify, but maybe so. I ended up paying it off 8 months early just to get the payment done though.

The big 3 are about to get a bailout package here in Canada too, but I'm wondering how they can still sponsor big sporting events? Like GM sponsoring 2010 Olympics for a bunch of millions.......

I'm in favor of sports, but I don't understand how a company that's circling the bowl can be handing out big $......

 

[BMR]

What kind of a credit score do you need to qualify for the 0% financing deals the manufacturers are always talking about?

Dont know the score, but I had to write a paper not too long ago about it for a business course...

Only something like 35% of people qualify for 0% and still only 10% close... As was said before, it's usually only offered on select models, and often you're forced into shorter payment terms which are sometimes half or less than what you could normally get. (Because of the time value of money, amongst other things.)

I'm in favor of sports, but I don't understand how a company that's circling the bowl can be handing out big $......

Cash is usually a only a portion of big business deals. It's still a large number though.

 

[501]

Sounds like they are trying to force the government into giving them a bailout. Scare tactics. Shut down the plants for a while and let the workers complain to the government till they cave in.

 

[Marlon_JB2]

Sounds like they are trying to force the government into giving them a bailout. Scare tactics. Shut down the plants for a while and let the workers complain to the government till they cave in.

Well the plants were gonna close for 2 weeks regardless. Holiday break.

This is just another 2 weeks of shutdown. Big deal, lol.

You're right, this could be scare tactics... BUT, honestly this is only a 2 week shutdown. It just happens to run right into the regular holiday shutdown.

 

[jnaut]

The big 3 are about to get a bailout package here in Canada too, but I'm wondering how they can still sponsor big sporting events? Like GM sponsoring 2010 Olympics for a bunch of millions.......

Because they're getting a bailout. Y'see how this works? When you get free money that belongs to other people, you're not as concerned with how you spend it.

 

[jnaut]

you're forced into shorter payment terms which are sometimes half or less than what you could normally get. (Because of the time value of money, amongst other things.)

While logical from a financial perspective, I haven't heard of this. Mine was a standard 5yr/60mo loan. 0%. My payment is done around August of next year.

 

[snowsport]

My 0% loan was for 5 years too. They offered, I didn't ask.

 

[2003renegade]

ya its all a scare tactic. the news makes it seem worse than it is. here in belvidere its normal to be down some time in the winter.. it always happens

 

[Marlon_JB2]

I was one credit tier away from qualifying for the 0% interest financing. Dangit. Ah well I'm only 21, I don't really expect much right now.

 

[jnaut]

I was one credit tier away from qualifying for the 0% interest financing. Dangit. Ah well I'm only 21, I don't really expect much right now.

Hmph. Just ask your congresscritter for a 'bailout'. I'm sure they'll oblige.