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Making moves that will certainly impact their upstream supply chain, several U.S. automakers have announced they will extend their end-of-year holiday shutdowns, which normally are about two weeks. On Dec. 17, Chrysler said it would close all of its 30 factories for at least a month starting around the weekend of Dec. 20-21. In total, the plants employ some 46,000 union workers. Chrysler said some facilities would remain closed for several more weeks.

Rob Neilley

December 31, 2008

1 Min Read
Automakers’ holiday shutdowns extended

On the same day, Ford announced it would extend its normal holiday shutdown by an addition week for a total of three weeks.

Vehicle sales in the United States are at their lowest level in 26 years, with industry-wide sales in November down 37%. Chrysler’s sales were down 47% for November. The company cut around 5000 salaried jobs that month using a buyout and early retirement offer. By the end of December it expects to have eliminated 1800 hourly jobs as well.

It’s not only the U.S. automakers feeling the pain. Toyota this week announced it would delay construction on a factory in Mississippi that will build the popular Prius hybrid. Honda said it was cutting it first-quarter production by 119,000 vehicles.

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