Chrysler's plant closures doing more than the norm

This article on CNN Money notes that when a car maker typically shuts down their production plants for the reason of having car surpluses in order to allow for the surpluses to catch up with production in terms of sales. However, in the case of Chrysler, who has shut down ALL of their plants for at least one month, it not only is to reduce its inventory--which is standing at approximately a 4 month total average wise in lag--it is also to cut down on the day to day costs, which is huge for a company that is reeling and on the brink of bankruptcy.

When I read this, all I can continue to think is that saying that the production plants are going to be closed for AT LEAST one month puts less of a chance of it being up and running after 30 days overall. Again, not knowing about the overall auto bailout package that may end up happening with the earmarked TARP money from the US government, it leaves Chrysler execs shaking their heads and shrugging their shoulders as to what to do--and for now, that means cutting costs in every way, so for the plants to be opened after that initial month and without immediate cash to use, all of those workers may be facing longer unemployed times than hoped.

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Chrysler's plant closures doing more than the norm

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