Chrysler to shutter operations for two weeks

Chrysler to shutter operations for two weeks

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DETROIT - Chrysler LLC said on Thursday it would 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.

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.

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This is the first time this has happened to a US auto maker! Perhaps it will force them to focus more of there attention to producing the smaller more fuel efficient cars we need.

Obvious;y if their sales are down 13% this year already, then they need to change some things immediately.

But is this a sign of this to come for other auto makers and suppliers in the US?

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Well, the US auto industry is in a recession according to Nissan Motor CEO Carlos Ghosn.

U.S. Auto Industry is in Recession, Nissan's Ghosn Says

A recession in the U.S. auto market and rising raw material prices are pressuring global automakers, Nissan Motor CEO Carlos Ghosn said Friday, but he expressed optimism the situation would improve.

"We are very lucid on the situation of the industry that there is a recession in the United States, at least in the car market," Ghosn told reporters, adding automakers also face rising costs for iron ore, precious metals, aluminum and other materials.

"These represent risk for the industry," he said.

Just like the rest of the country, the auto industry is feeling it too.

Lets hope this has nothing to do with the oil companies not wanting Chrysler to produce their electric and hybrid cars.

I know that is a long shot but there have been many instances of clean energy projects being forcefully shelved by oil related companies with more money than morals.

When they eventually produce a car that doesn't need oil, I want one!!

Regards S_G