Auburn Hills, Michigan - Chrysler llc announced 17 Dec that it is closing its US plants for a month to allow demand to catch up with production.
The US car giant said that continued lack of consumer credit for American car buyers has had "a dramatic impact on sales in the US," and has led to these plans to cut production in the US.
Chrysler said this move will keep production and dealer inventory aligned with US market demand.
All Chrysler plants will stop work at the end of the shift Friday 19 Dec, and employees will return to work no sooner than Monday 19 Jan 2009, the company said.
According to Chrysler, its dealers say they have "many willing buyers for Chrysler, Jeep and Dodge vehicles," but are unable to close the deals, due to lack of financing. Dealers feel they have lost an estimated 20 to 25 percent of their volume because of this credit situation, the car maker concluded.