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Wednesday, December 17, 2008

Chrysler Shuts Down All Factories

by Calculated Risk on 12/17/2008 05:07:00 PM

From MarketWatch: Chrysler to idle all factories for at least a month

Chrysler said Wednesday that it will idle all of its manufacturing operations starting this Friday through at least January 19 in an effort to keep inventories more aligned with plunging U.S. demand for new cars and trucks.
Doesn't sound good.

Earlier today from the WSJ: Chrysler Warns Dealers About Loans to Fund Car Inventories
In a letter dated Dec. 12, Chrysler Financial Chief Executive Tom Gilman said dealers have been withdrawing up to $60 million a day from the fund, according to a copy of the letter that was reviewed by The Wall Street Journal.

Dealers familiar with the matter said they started pulling money from the "cash management account" because of fears that Chrysler's auto operations could be forced to file for bankruptcy.