Chrysler Cuts Production, Extends Holiday Shutdown

It is not clear yet if the recently unveiled five-years business plan has taken into account the continuing crisis, but American manufacturer Chrysler is now forced to idle its plants for a longer time during the holiday breaks, to compensate for the not-so-exciting sales figures recorded in October.

The idling schedule is as follows: Windsor, Ontario – December 21 – January 18; Brampton, Ontario – December 21 – January 18; Toledo – December 21 – January 11.

The reason behind this decision (normally, the holiday break runs from December 24 to January 4) is, as said, the declining sales in October. This left Chrysler and its dealers with some inventory issues, which need to be adjusted.

"We're being incredibly careful in what we do, and we're monitoring the inventory levels of the plants and in the dealer network. We're trying to keep everything under 60 days," Sergio Marchionne, the company's CEO said in the beginning of the month.

At the end of October, Chryser's dealers had a 68-days inventory, according to spokeswoman Kathy Graham, talking for Autonews.

To encourage the sale, Chrysler announced last week a stair-step program for dealers, which would provide up to $1,500 per vehicle if the stores hit the factory objective. Welcomed by dealers, the program is still facing Chrysler's slow reaction to orders.

"We've had stuff that was ordered a long time ago that has taken a long time to arrive," Kevin Wittrock, a dealer in Iowa told the source. "I've got a Laramie pickup ordered in August. I don't know if I'll have it by the end of the year."