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Chrysler plans two-week global shut-down

Chrysler plans two-week global shut-down

Nelson Ireson March 13th, 2008 Nelson Ireson By Nelson Ireson Author March 13th, 2008
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December 31st, 1969 Worries over Chrysler's existence beyond the next handful of years have gone from whispers to open conversation in recent months, and the decision to shutter its entire operation for two weeks at mid-year will no doubt spur even more speculation. Chrysler is couching the shut-down as a way to increase productivity and efficiency, but it is the first time Chrysler has used the tactic on a global scale, and that speaks of desperation. The news of the global halt follows last week's announcement of the closure of the company's Pacifica design studio. Cost-cutting measures and productivity enhancements are the motivation for the recent actions, but cutting back excess capacity can only go so far. Workers across the globe will be forced to take vacation time - provided they have enough - over the two weeks beginning July 7th. Those without enough vacation time will simply have to go without pay. That's surely an effective cost-cutting measure, but what does it do to the morale of the workforce - especially at the rank-and-file level? The shutdown is business as usual for some parts of Chrysler, however. Canadian Auto Workers President Buzz Hargrove, speaking with Automotive News said that workers at two Canadian plants wouldn't be affected because a summer shutdown is standard practice for those locations. Time will tell if Cerberus and Chrysler can weather the current economic storm, but having entered in poor financial shape, and taking drastic measures to stay afloat, the chances of capsizing are looming large.
Chrysler plans two-week global shut-down

Chrysler plans two-week global shut-down

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Worries over Chrysler's existence beyond the next handful of years have gone from whispers to open conversation in recent months, and the decision to shutter its entire operation for two weeks at mid-year will no doubt spur even more speculation. Chrysler is couching the shut-down as a way to increase productivity and efficiency, but it is the first time Chrysler has used the tactic on a global scale, and that speaks of desperation.

The news of the global halt follows last week's announcement of the closure of the company's Pacifica design studio. Cost-cutting measures and productivity enhancements are the motivation for the recent actions, but cutting back excess capacity can only go so far.

Workers across the globe will be forced to take vacation time - provided they have enough - over the two weeks beginning July 7th. Those without enough vacation time will simply have to go without pay. That's surely an effective cost-cutting measure, but what does it do to the morale of the workforce - especially at the rank-and-file level?

The shutdown is business as usual for some parts of Chrysler, however. Canadian Auto Workers President Buzz Hargrove, speaking with Automotive News said that workers at two Canadian plants wouldn't be affected because a summer shutdown is standard practice for those locations.

Time will tell if Cerberus and Chrysler can weather the current economic storm, but having entered in poor financial shape, and taking drastic measures to stay afloat, the chances of capsizing are looming large.

Tags: Industry

Posted in: Chrysler, News


Comments (6 total)

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  1. By Gus #1, Posted: 3/13/2008

    Well, besides the Wrangler, does Chrysler really have anything that the competition doesn't have better?

  2. By Knight3058 #2, Posted: 3/13/2008

    This does not look good at all.
    Lets see, as for your question.
    The 300.
    The Viper.
    The Minivan.
    The Ram SRT10.
    The PT/Cruiser.
    The Challenger.
    The 1999 Charger R/T (God I wish that had been made).
    The ME 4-12, which outpaced almost anything and will never see the light of day at a dealership. A shame really.

  3. By SuperSkyline89 #3, Posted: 3/13/2008

    They might sell a lot of all of those but isn't a single reason for that besides American's (and Canadians for that matter) are cheap asses and will buy anything with a low price on it.

  4. By Gus #4, Posted: 3/13/2008

    The 300 is getting old.
    The vette is a better all around car than the Viper.
    Both Ford, Chevy and the Japanese make minivans.
    The Ram is also getting old (compared to the new F150 and Silverado).
    They don't even have a full size SUV (Expedition/Tahoe).
    The PT Cruiser is a lame joke of a car.
    The Challenger can't be bought yet, and will have a tough time aginst the Mustang.
    The only thing they make that's worth a crap is the Wrangler (which was just named one of the poorest quality and least safe vehicles on the road) and the Minivan, which really stirs passion for the brand.

    No wonder their dealerships are ghost towns...

  5. By hein #5, Posted: 3/14/2008

    Chrysler makes UGLY cars. That's the problem. They should fire therir designer. Take a look at the new Cadillac Cts, Malibu, Camaro and you get my drift. GM is doing its job in the design department.

  6. By Bodhi #6, Posted: 3/14/2008

    Gus, you do realize that you are speaking out your OPINIONS.. right? Chrysler have great cars, it is the appreciation of them what is not good. They are not losing it now, I believe they lost the companies in the 80s with really really bad cars (not only them every American car company for that matter).

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