As an unwilling investor in Chrysler Corporation, a zombie automaker owned by a bullet-dodging private equity company, I’d like to ask a simple question: can we let the ailing American automaker die already? I know there are tens of thousands of workers whose livelihoods are threatened by a ChryCo C7, but their jobs were already sacrificed on the altar of corporate malfeasance, back when Daimler was calling the shots. Watching this end game is as excruciating as clocking the twenty-ninth move of the first game of the 1972 Fischer Spassky tournament. Anyway, here’s the carmaker’s latest attempt to escape/prolong the inevitable. “Chrysler LLC will extend shutdowns at five factories one week beyond the scheduled reopening date of Monday, Jan. 19,” Automotive News [sub] reports. “Plants in Belvidere, Ill.; Sterling Heights, Mich.; and Toluca, Mexico, will reopen Jan. 26, the company said today. Chrysler’s Global Engine Manufacturing Alliance engine joint venture and its Trenton, Mich., engine plant also will take an extra week and reopen Jan. 26.” You could say this is a cynical move to blackmail Uncle Sugar to cough-up the second installment of Chrysler’s $7b teat suckle, but it’s most likely a simply cash flow problem. You know: no income, lots of expenditure, no cash. Oh and get this: to cheer everyone up, Chrysler also announced it will reopen its Windsor, Ontario (minivan) and Conner Avenue, Detroit (Viper) plants as scheduled on Feb. 2. Of all the vehicles to start building again…
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All this bailout business reminds me of a quote of Theodore Roosevelt – “Sure, an uneducated man might steal a ride on a freight train. Give him a university education and he might steal the whole railroad.”
Ahead of his time, that Roosevelt!
Which cars are made at which plants? I know Belvidere makes the Caliber/Compass/Patriot.
And did they say the other factories not listed *will* reopen on January 19?
Anyone know how many days’ supply of the minivans and Vipers there are? Chrysler is trying to sell the Viper brand. Perhaps starting up the Viper line has something to do with that sale (or attempt thereof).
The correct term is “mothball.”
Chrysler plant list (may be incomplete)
Belvidere, IL – Caliber, Compass, Patriot
Sterling Heights, MI – Sebring, Avenger
Toluca, Mex – PT Cruiser, Journey
Windsor, Ont – Minivans
St. Louis South – Minivans Shuttered.
St. Louis North – Ram (Quad cabs?)
Jefferson North – Grand Cherokee, next Durango
Brampton, Ont – 300, Charger, Challenger
Toledo, OH South – Wrangler
Toledo, OH North – Liberty, Nitro
Newark, DE – Durango, Aspen Shuttered.
Saltillo, Mex – Ram (HD models I believe)
Warren, MI – Ram (Everything else), Dakota
I think that’s everything.
So how are the suppliers managing their businesses? Frankly, I’m surprised there isn’t more coverage of their plight at the moment. I see nothing of substance in the trade or MSM. There even seems to be a dearth of company statements on the situation.
Maybe this is a part explanation;
“Johnson Controls entered a “quiet period” on Dec. 15, 2008 in advance of its quarterly earnings report. During this time, the company cannot comment on any previously-issued earnings guidance of material information for the current quarter or year. The quiet period will end on Jan. 16, 2009 with the release of the company’s quarterly earnings results.”
If Johnson Controls are any example, would it be reasonable to expect announcements of bad news for suppliers any minute?
Sebring/Avenger are built down Van Dyke from me at the Sterling Heights plant. God, what an awful car. I know everyone has sad it before, but it is so bad that it never gets old saying it.
Welcome to the futility bowl.
Score:
Taxpayers: 0
Cerberus: 14
Now wait a minute. For exactly what reason were those “bridge loans”? My impression was that job-preservation was the main priority as viewed by congress, silly me.
I could be wrong (often am) but is there a backlog of Vipers? (Not in the offices of Cerebus; the cars). I can’t remember seeing spy pictures of airport parking lots leased to store them.
If minivans and Vipers are what Chrysler can sell, by all means get to it so you can pay back those loans.
Silly me. what was I thinking?
We all know we are going to die in the end. Some of us will go quickly and some will linger on and on. Auto companies seem to be like the later. The media including TTAC should be thankful for the lingerers.
It makes for repeat business as everyone wants to find out the next episode of slow death of the American car companies. Once you are hooked, as I am, you can’t resist coming back for more.
The segment of trucking that serves a lot of the JIT needs of the auto industry is in full retraction mode right now. Estimates are that 40% of expediters have or soon will exit the market.
One of the plants that my company owns and operates used to be a Chrysler facility and still sends something like 80% of it’s product to Chrysler. In response to the above-mentioned question regarding supplier’s reactions…it’s pretty tough for us right now. We’ve initiated rolling days off (basically forcing the use of vacation days now instead of later in the year) and have scaled back production severely. While my facility here in the south deals more with the heavy trucking sector, we are also feeling the bite of the economic downturn, but are doing what we can to minimize losses and keep people employed. I don’t see a good ending for my colleagues in Dayton that supply Chrysler…
@Kurt:
There is no backlog of Vipers. I tried to order a new ACR back in July and was told that I’d be waiting eight months for delivery.
ACR delivery spots are worth cold cash on ViperAlley and similar places.
There’s also *no* press/insider/jerkoff blogger discounts on these things.
Demand for the 600hp Viper in all its forms has been mad strong, yo. I reviewed the car here and was instantly converted. The ACR is even better.
“One more week of shutdowns for five plants
January 15th, 2009 by DaveAdmin
Chrysler has announced an extra week of shutdowns for Belvidere (Compass, Patriot, Caliber), Sterling Heights (Sebring/Avenger), Toluca (PT Cruiser, Journey), and two engine plants (Trenton [V6] and Dundee [I-4]). All are scheduled to reopen January 26. Chrysler had added two weeks of extra downtime to all its plants over the holidays.”
So that means everything else will start up again soon: Toledo, Brampton, Windsor, Warren, St Louis, Jefferson Ave, etc. These are only final assembly plants. My guess is that includes the stamping plants as well as the two transmission plants in Indianna, the casting plant in Kokomo, and the engine plants in Kenosha, WI and on Mack Avenue.
Shouldn’t the headline be: “Chrysler reopening most of it’s plants?” Remember all the folks who said Chrylser would never reopen it’s plants?
I have to admit, I’m suprised any of the plants are re-opening. Has Chrysler cut down on their backlog of vehicles? I haven’t seen or heard of any GMAC-like financing at Chrysler financial.
Let’s just hope there’s $7B in assets left to go back into the taxpayer’s purse after C7. If not – can we go after Cerberus?
Jack Baruth, please look here … http://www.trader.ca. Remember, the Canadian dollar is at 80c right now, so you have to do the currency exchange.
Can I be your friend?
@NickR: For what should I be looking? :)
If you think promising to open your plants is a way for Chrysler to get back to normal, think again. With no orders, fleets slowing buydown (hertz rental laid off 4000 today), and the worst product line of any domestic or foreign builder, who is to buy these new Chryslers? I suggested in another blog to make them the official cars of the US and State and local governments. Millions of somber gray sedans for the officials. This way our nationalized auto company can sell “yankee doodle” models for the govt. No, maybe that’s a bad idea, we pay twice. Once to subsidize building them, and then to have the taxpayer pay retail for them.