December 17th, 2008
06:29 PM ET

Chrysler shuts down all production

Editor's Note: Hear what CNN's Chief Business Correspondent Ali Velshi, and Fortune's Managing Editor Andy Serwer talk about Chrysler's announcement tonight on AC360° at 10 p.m. ET.

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Peter Valdes-Dapena
CNNMoney.com senior writer

Chrysler LLC announced late Thursday that is stopping all vehicle production in the United States for at least a month.

All 30 of the carmaker's plants will close after the last shift on Friday, and employees will not be asked to return to work before Jan. 19.

Chrysler blamed the "continued lack of consumer credit for the American car buyer" for the slow-down in sales that forced the move.

Chrysler ordinarily shuts down operations between Dec. 24 and Jan. 5 for the holidays. This closure would add roughly two weeks to that shut-down.

Chrysler would not say how many fewer vehicles would be produced during this shut-down.

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Filed under: auto bailout • Economy
soundoff (2 Responses)
  1. JeneMarie Jones

    What is gong on! We could not take a breath before Congress bailed out WallStreet! Why, because that's where their money is; in the market, they have no intention of looseing any profits. But when it comes to average Joe they let them sink. I don't care about Chrysler, GM or Ford but I do care about the guy/gal that works the factories trying to keep his/her home and food on their tables. Who's going to pay the employment for these people? The working class don't have jobs, but the CEO's have their bonsus and Congress has it's stock market!

    December 18, 2008 at 10:18 am |
  2. Linda

    It is easy to see that the established group that oversees and channels our money as taxpayers and a nation is beyond corrupt. If we really want to solve our financial problems, give each family a million dollars. Tax revenue would be generated as would spending. Mortgages would be paid as would credit cards. I am sure many cars would also be purchased. In addition, it would cost a lot less money overall. Since it is our money, give us enough to solve our problems and in the process the nations.

    December 18, 2008 at 9:45 am |