The bad news for The D2.8 and workers just keeps coming. The AP reports [via Yahoo! Business] that Chrysler will shutter their St. Louis Southminivan factory indefinitely. ChryCo will also reduce its St. Louis North pickup truck production facility from two shifts to one. Chrysler President Tom LaSorda used the plant close announcement as an opportunity to deny rumors that Chrysler's going Tango Uniform, heading for the boneyard. "Hogwash," LaSorda euphemized (euthanized?). "Absolutely not being considered at all." Not at Chrysler, and not at the press conference. "Absolutely no relevance. I don't even want to entertain those questions." The idea that the Cerberus Brain Trust hasn't even thought about a MTLSAS (man the lifeboats strip and flip) simply sounds silly. When the dust settles, LaSorda will be sitting fat and happy in a well-funded retirement villa, while tens of thousands of blue and white collar employees wonder what hit them.
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When was the last time the D2.8 gave information that was honest and sincere? No one ever holds them accountable for their words – not even their supposed bosses and BOD. Outside of maybe Ford who Billy figured he was screwing up the company and actually stepped aside.
And to think Lasorda’s mom and pop were both union leaders.
Well, I guess Windsor will still be making vans, so that’s good. Windsor doesn’t need any more closures. I guess someone has to build the 3 Routans that VW will sell.
Gotta agree here. The minivan market is about as dead as I’ve ever seen it… and it will likely get worse.
At a dealer auction yesterday I saw a 14 year old Geo Metro (non-Xfi) go for $1600. It had a rust hole on the door big enough to put your finger through, and a ratted out sun scarred interior, but it had 84,000 miles. .
On the flip side, I bought a 2000 Olds Silhouette Premier with 103k for only $1300. It has all the options including leather, captain’s chairs, TV/VCR combo, 103,000 miles and is in far better shape.
I’ll be selling it cheap for $2000 in order to pay for most of my family’s vacation expenses in Florida. I put it on Orlando’s Craigslist and got a call no less than 20 minutes later.
There’s also a 2005 Ford Freestar SES that was a fully reconditioned frontline unit that some misguided VW dealer tried to sell locally for $10k. Bought it for our Florida trip last Thursday for $4750 with a pristine interior, all the fluids changed, and a full tank of gas. I’ll be selling it for $5900 when I get back.
Who has Chrysler retained to run their chapter 11/7 proceedings? Is there any agency in their pocket or on staff or being retained like there is at GM? If not, then maybe they aren’t looking at chapter 11. Does chapter 7 require a legal staff to implement?
I still can’t figure this out, can anyone else. We are still busier than we have ever been building seats for Chrysler Minivan and trucks.
We are getting 15% more out of our production lines then they where designed for.
We are on ovetime, had to run the plant on the long Canada Day weekend, and still trying to figure out how to meet the demand. It doesn’t make any sense when sales are so down.
daro31:
Thanks for your info…being on the sales side, I can’t make sense of your situation either.
My only guess…Journey? Of CLLC’s vehicles, it is doing comparatively well.
Other than that…donut. Chrysler certainly isn’t short vehicles, as there are now dealers simply returning the franchise (and inventory). Given the market and the relative weakness in near term new product, this may continue/increase.
Throughout all of these denials of C11, the thing that perplexes me is the implication that the head honchos at Chrysler (and GM, when the time arrives) somehow have a choice in the matter. From the basics I’ve gathered, the way it works is basically this: you run out of money, you file. So essentially, these statements are basically lying through their teeth by saying, “No worries, we’re on top of, and comfortable with, our cash burn.” It’s a bit like the full and complete reassurances of confidence in a football manager – sure-fire confirmation that he’s gone.
It’s at the stage now where no-one with half a brain cell believes a word Chrysler (or GM) has to say, but, well, good luck with that. You’ll be needing it.
Seeing that the Caravan and the T&C outsell the nearest competitor (Odyssey) 2 to 1, Chrysler is the best positioned of any manufacturer in the minivan market.
Additionally, a lot of the falloff for sales of the Caravan are due to the ending of the short wheel base model in leiu of the the new Journey CUV.
Sounds like Chrysler is doing the smart thing and idling a plant if one plant can produce enough vehicles in this down market.
You know, after reading that I just thought of something.
If (when) Chrysler goes belly up, what happens to Nissan’s trucks that were supposed to be built by Chrysler? Would Nissan even care knowing full well that Chrysler is on its last legs?
This just gets more and more interesting by the day.
They may end buying the license or whole design and assembly plant for peanuts. Nice business in fact: you get a developed truck and it’s plant for little money.