- Acura
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04:08 p.m. EDT, December 18, 2008
Beginning on Friday, December 19, Chrysler LLC will idle its plants in the United States, Canada, and Mexico that produce the brands Chrysler, Jeep, and Dodge after a devastating sales plunge of 47 percent in November alone.
The 30,000 union workers employed in those plants will receive almost full wages and benefits for the period, although the move is in direct response to the company's financial crisis in the face of plummeting sales and a world-wide credit crisis.
For its part, General Motors plans to cut production in the first quarter of 2009 by 60 percent over 2008 and on Wednesday, December 17 halted the building of an engine plant that had been key to long-term plans for fuel-efficient vehicles.
Although there has been no statement forthcoming from the Bush White House on Chrysler's decision, the general consensus is that the pressure is now greater than ever on the administration to use $14 billion from the Troubled Asset Relief Program to stave off the collapse of Chrysler and GM.
"This administration must act now," said Sen. Debbie Stabenow, a Michigan Democrat. "I once again call upon the president to use his authority and provide a bridge-loan to our automakers."
Although the Ford Motor Co. has asked the federal government for a $9 billion line of credit, the company says it has sufficient operating funds to survive through 2009.




