Chrysler's holiday shutdown had already been extended two days, and was to go from December 22 to January 2. But with a 47.1 percent sales drop in November, the largest of any carmaker, Chrysler is being forced to take increasingly drastic measures as it waits desperately for federal assistance. The company's 46,000 hourly workers in the U.S., Mexico, and Canada will presumably be affected by the shutdown.
Chrysler chairman Bob Nardelli told Congress in recent appeals for assistance that his company will close out 2008 with about $2.5 billion in cash on hand. And with first-quarter expenditures of about $9.4 billion in '09, you can quickly see the magnitude of its cash-flow problem. Chrysler dealers cite many willing buyers but an inability to complete financing on the vehicles due to consumers' lack of access to credit.--Colin Mathews
[source: Automotive News]