Thursday, December 18, 2008

Chrysler shuts down plants for one month and may not come back; GM delays Volt; Ford will shut down 10 N.A. plants in early January

It seems America won't be making cars for Christmas. It's all down to the auto American crisis, and the senate refusing to give bailout for Detroit's Big Three. So for that, American auto industry is suffering.
Chrysler has announced that it will shut down all plant activities, thirty in all, at the end of shift, Friday, December 19th for a month. However, with Chrysler's financial situation, they might never be back. Never-the-less, Chrysler claims it has many potential buyers willing to buy their products, but the credit crunch has prevented them from finalizing sales. Chrysler estimates that anywhere form 20% to 25% of potential buyers have failed to secure financing.

Similarly, GM has delayed the construction of a plant which is designated to build its future “savior”, the Volt. The delayed plant was suppose to build the 1.4L turbocharged engine that regenerates the Volt's batteries. This plant is also expected to assemble powerplants for the upcoming Chevy Cruze. So when will the plant be back? Well, if GM stays alive, the plant should come in by April, so it could produce the Volt and Cruze as 2011 models. So Volt is still on track.

At the Blue Oval, things are madness. Ford announced that they'll be shutting down 10 North American factories the week of January 5. Unlike Chrysler's planned one month full downtime. However, Ford has confirmed that 8 of the 10 factories will come back to life beginning the week of January 12. So during the week of January 5, Ford's only active North American plants will be in Dearborn (F-150), and Kansas City (F-150, Escape/Mercury Mariner). The week of January 12 will see all facilities up save Hermosillo, Mexico (Fusion, Milan, Lincoln MKZ) and Oakville, Ontario, where the Flex, Edge, and MKX are built.Ford is planning to cut down its quarterly output to 430,000 vehicles, and shutdowns at staggered intervals are expected to continue throughout early next year.

So, keep on living Detroit!

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