Vulpix
12-18-2008, 12:30 PM
Chrysler plants close for a month
(http://news.bbc.co.uk/2/hi/business/7788954.stm)
http://newsimg.bbc.co.uk/media/images/45140000/jpg/_45140547_-5.jpg
Chrysler factories will not resume production before 19 January
BBC (http://news.bbc.co.uk/2/hi/business/7788954.stm): The struggling US carmaker Chrysler is to halt production at all 30 of its factories for one month.
Chrysler has also reportedly restarted its merger talks with General Motors, as both firms see their cash reserves dwindle as the downturn bites.
The Big Three US carmakers are waiting for the US government to find a way to help the struggling car industry.
A $14bn (£9.4bn) bail-out failed in the Senate last week, raising fears of job cuts and a possible industry collapse.
The Wall Street Journal, which reported that merger talks had re-started, said that Chrysler's owner, Cerberus Capital, had signalled that it was willing to give away part of its ownership of Chrysler.
Earlier this year, both Chrysler and GM held talks on a possible merger, but the the talks broke down.
Factory shutdowns
In announcing its plant closures, Chrysler also left open the possibility that the factories would be closed for more than a month.
Employees would not return to work any sooner than Monday 19 January, it said.
GM has suspended major work on its $370m engine factory in Michigan, where it plans to build a new small car engine which is key to its efforts to reinvent itself as a maker of fuel-efficient and all-electric cars.
The new plant is scheduled to build a turbocharged 1.4-litre engine for the Chevrolet Cruze small car and another version of the engine to provide backup power to its electric car, the Chevrolet Volt.
http://newsimg.bbc.co.uk/media/images/45308000/jpg/_45308811_006510011-1.jpg
GM is suspending work on an engine plant for its Volt electric car
Last week, GM said it was shutting down 30% of its North American production.
Also on Wednesday, Ford announced it was to extend the normal two-week Christmas shut-down at 10 of its North American plants for an extra week.
Chrysler, Ford and General Motors have repeatedly warned that millions of jobs could be lost if the government does not agree to a package of loans to support the industry.
While 46,000 Chrysler employees will be directly affected by the plants closure, many more Americans whose jobs depend on the big car makers will be watching with great concern, says the BBC's North America editor, Justin Webb.
The Bush administration has said it will act to prevent a disorderly collapse of the car industry, and loans to keep the big three companies in business could be arranged within days, our correspondent adds.
The White House warned on Tuesday that the carmakers would have to make "concessions" to secure the bail-out.
(http://news.bbc.co.uk/2/hi/business/7788954.stm)
http://newsimg.bbc.co.uk/media/images/45140000/jpg/_45140547_-5.jpg
Chrysler factories will not resume production before 19 January
BBC (http://news.bbc.co.uk/2/hi/business/7788954.stm): The struggling US carmaker Chrysler is to halt production at all 30 of its factories for one month.
Chrysler has also reportedly restarted its merger talks with General Motors, as both firms see their cash reserves dwindle as the downturn bites.
The Big Three US carmakers are waiting for the US government to find a way to help the struggling car industry.
A $14bn (£9.4bn) bail-out failed in the Senate last week, raising fears of job cuts and a possible industry collapse.
The Wall Street Journal, which reported that merger talks had re-started, said that Chrysler's owner, Cerberus Capital, had signalled that it was willing to give away part of its ownership of Chrysler.
Earlier this year, both Chrysler and GM held talks on a possible merger, but the the talks broke down.
Factory shutdowns
In announcing its plant closures, Chrysler also left open the possibility that the factories would be closed for more than a month.
Employees would not return to work any sooner than Monday 19 January, it said.
GM has suspended major work on its $370m engine factory in Michigan, where it plans to build a new small car engine which is key to its efforts to reinvent itself as a maker of fuel-efficient and all-electric cars.
The new plant is scheduled to build a turbocharged 1.4-litre engine for the Chevrolet Cruze small car and another version of the engine to provide backup power to its electric car, the Chevrolet Volt.
http://newsimg.bbc.co.uk/media/images/45308000/jpg/_45308811_006510011-1.jpg
GM is suspending work on an engine plant for its Volt electric car
Last week, GM said it was shutting down 30% of its North American production.
Also on Wednesday, Ford announced it was to extend the normal two-week Christmas shut-down at 10 of its North American plants for an extra week.
Chrysler, Ford and General Motors have repeatedly warned that millions of jobs could be lost if the government does not agree to a package of loans to support the industry.
While 46,000 Chrysler employees will be directly affected by the plants closure, many more Americans whose jobs depend on the big car makers will be watching with great concern, says the BBC's North America editor, Justin Webb.
The Bush administration has said it will act to prevent a disorderly collapse of the car industry, and loans to keep the big three companies in business could be arranged within days, our correspondent adds.
The White House warned on Tuesday that the carmakers would have to make "concessions" to secure the bail-out.