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Steane Klose | Dec 18, 2008

The credit crisis continues to adversely affect the North American market, with reports that new car buyers are continuing to find it difficult to obtain credit to finance their new car purchases. As a result, Chrysler LLC has announced that it will make significant adjustments to the production schedules of its manufacturing operations.

The ‘significant adjustments’ are being made with the intention to maintain production and dealer inventory aligned with U.S. market demand. To achieve this, Chrysler has confirmed that all of its manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009.

Interestingly, Chrysler dealers are saying that they have willing buyers for their range of vehicles, but are unable to close deals, due to the tightening in consumer credit. They estimate that the credit crisis has lost them an estimated 20 to 25 percent of their volume.

The Company will continue to monitor the production schedules of its manufacturing operations moving forward, and we can no-doubt expect further similar news in 2009, with no real relief to the crisis being in sight.

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