Jack_Berry
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usatoday reports chrysler will close all but essential operations for two weeks in july. juy7 and the 14th.
Chrysler plans two-week shutdown in July
Posted 3h 53m ago | Comments72 | Recommend19 E-mail | Save | Print |
Digg del.icio.us Newsvine Reddit FacebookWhat's this?By David Bailey, Reuters
DETROIT — Chrysler said Thursday that it will shut all but its most essential operations worldwide for two weeks in July, a first for the struggling No. 3 U.S. automaker as it attempts to cut costs and preserve cash.
The broad shutdown the weeks of July 7 and July 14 was announced to employees in an e-mail from Chief Executive Bob Nardelli.
Nardelli said the move is needed to help Chrysler to create "efficiency across organizational lines and boost productivity."
Chrysler, General Motors and Ford typically idle their U.S. plants in July for vacations and shut individual manufacturing operations at various times to retool when they have car and truck model changeovers.
Chrysler, which is in a restructuring that includes trimming some vehicle lines and offering buyouts to its 44,000 U.S. hourly workers, lost $1.6 billion in 2007.
FIND MORE STORIES IN: San Diego | General Motors | North | Ford | Chrysler | Cerberus Capital Management | Daimler
The automaker has been accelerating restructuring efforts since Cerberus Capital Management acquired a nearly 80% stake from Daimler last summer.
The U.S. auto market has slumped by a wider margin than most analysts anticipated since Cerberus completed the acquisition of its majority stake in Chrysler. The company has indicated that it is trying to step up its restructuring efforts in response.
Nardelli has repeatedly said the automaker would focus on bolstering its cash position, and Chrysler has taken a number of cost-cutting steps in recent weeks.
Chrysler announced last week that it was shutting a design studio outside San Diego it has maintained since the early 1980s.
The automaker has also taken a hard line in negotiations since late last year with bankrupt parts supplier Plastech Engineered Products in an effort to steer clear of a more expensive bailout for the privately held company.
Chrysler's U.S. sales were down almost 13% the first two months of this year.
Chrysler spokeswoman Mary Beth Halprin said the automaker will remain staffed in some areas during the summer shutdown to support its sales network.
GM spokesman Dan Flores said the No. 1 U.S. automaker plans to idle its U.S. plants the first two weeks of July this year, as it has in the past.
Ford is also planning a two-week shutdown of its North American assembly plants in July, similar to past years, spokeswoman Angie Kozleski said.
Copyright 2008 Reuters Limited.
this news and the delphi strike equals some slow times ahead. good time though to plan vacations.
Chrysler plans two-week shutdown in July
Posted 3h 53m ago | Comments72 | Recommend19 E-mail | Save | Print |
Digg del.icio.us Newsvine Reddit FacebookWhat's this?By David Bailey, Reuters
DETROIT — Chrysler said Thursday that it will shut all but its most essential operations worldwide for two weeks in July, a first for the struggling No. 3 U.S. automaker as it attempts to cut costs and preserve cash.
The broad shutdown the weeks of July 7 and July 14 was announced to employees in an e-mail from Chief Executive Bob Nardelli.
Nardelli said the move is needed to help Chrysler to create "efficiency across organizational lines and boost productivity."
Chrysler, General Motors and Ford typically idle their U.S. plants in July for vacations and shut individual manufacturing operations at various times to retool when they have car and truck model changeovers.
Chrysler, which is in a restructuring that includes trimming some vehicle lines and offering buyouts to its 44,000 U.S. hourly workers, lost $1.6 billion in 2007.
FIND MORE STORIES IN: San Diego | General Motors | North | Ford | Chrysler | Cerberus Capital Management | Daimler
The automaker has been accelerating restructuring efforts since Cerberus Capital Management acquired a nearly 80% stake from Daimler last summer.
The U.S. auto market has slumped by a wider margin than most analysts anticipated since Cerberus completed the acquisition of its majority stake in Chrysler. The company has indicated that it is trying to step up its restructuring efforts in response.
Nardelli has repeatedly said the automaker would focus on bolstering its cash position, and Chrysler has taken a number of cost-cutting steps in recent weeks.
Chrysler announced last week that it was shutting a design studio outside San Diego it has maintained since the early 1980s.
The automaker has also taken a hard line in negotiations since late last year with bankrupt parts supplier Plastech Engineered Products in an effort to steer clear of a more expensive bailout for the privately held company.
Chrysler's U.S. sales were down almost 13% the first two months of this year.
Chrysler spokeswoman Mary Beth Halprin said the automaker will remain staffed in some areas during the summer shutdown to support its sales network.
GM spokesman Dan Flores said the No. 1 U.S. automaker plans to idle its U.S. plants the first two weeks of July this year, as it has in the past.
Ford is also planning a two-week shutdown of its North American assembly plants in July, similar to past years, spokeswoman Angie Kozleski said.
Copyright 2008 Reuters Limited.
this news and the delphi strike equals some slow times ahead. good time though to plan vacations.
