CNN report re Chrysler shut down

[fastfret7]

And also this story:

Chrysler Warns Dealers About Loans to Fund Car Inventories
By NEAL E. BOUDETTE

DETROIT-- Chrysler LLC's financing arm has warned dealers it may have to temporarily stop loans that dealers use to pay for stocking vehicles on their lots as a result of a recent wave of withdrawals from a fund used to pay off those loans.

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.
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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. "Everybody is concerned about that," said one dealer who did not want to be named.

Chrysler Financial allows dealers to put money into the cash management account and pays them 2% interest. The money is then used to make payments on the loans dealers take out to buy new cars.

In the letter, Mr. Gilman said more than $1.5 billion has been withdrawn from the CMA fund since July.

"Continued significant levels of withdrawals from CMA could potentially force us to temporarily suspend wholesale funding," he wrote. He asked dealers not to withdraw "beyond what's absolutely necessary."

News of the letter was reported by Bloomberg News.

Suspending loans for purchasing new-vehicle inventories would be a tough blow for Chrysler. Dealers wouldn't be able to order cars and Chrysler's revenue could plunge, since auto makers book car sales when cars are shipped from plants to their dealers.

[dayvedayve]

GM said to stop work on plant that will be used for the Volt. Looks like they are about to say, no money to help us stay afloat then we will delay the "green" machine.

[fastfret7]

This is getting dark......:(

[kylepo]

dragon you were right a couple months ago, but when the sales took a nose dive thats when the invetories went up. They are just adjusting now to meet demand because I dont care what anybody says no one could of predicted this.

[MerF]

Ouch.

[camaro1]

GM sells toyota's, ever see a pontiac vibe, it is all toyota matrix with gm badges

also GM sells daewoo, ever see a chevy aveo, it is a daewoo with gm badges

i hate having to work on these gm models

[MerF]

I learned something new. Post retracted.

[TonytheTiger]

I heard in the news today that Chrysler will stop producing cars for a month, until the end of feb,And then start back up.
Ford was also mentioned, news said ford was shutting down 10 of its plants.

Any of you guys hear the anything?

[FenwickHockey65]

GM will be idling plants through January as well.

What else have I heard? That toyota is on track to lose $1.1 billion in the second half of its fiscal year. That honda's cut their profit forecast due to declining sales.

Everyone is in trouble. Not just us, not just Ford, not just Chrysler. Everyone.

[TonytheTiger]

Yea its been looking at way and getting worse.
So we have a problem?
How can this be solved?

[ucla1ove3]

get a better congress...

[Mr. Wyndham]

merged.

How can it be solved??
A lifeline, a LOAN....so that time can heal the economy.

[1_2Many]

Did anyone else see that GM has halted Chevy Volt engine production???? This is getting way too close to our Camaro.

[FenwickHockey65]

Originally Posted by 1_2Many

Did anyone else see that GM has halted Chevy Volt engine production???? This is getting way too close to our Camaro.

No, it's not. Camaro production begins in February 2009. The engines are ready for production, the 3.6L DI VVT V6 is already in the CTS and the 6.2L LS3 V8 is already in the Corvette and G8 GXP.

The Volt is not scheduled for arrival until November of 2010. The engine is a brand new design. GM has plenty of time to set a few affairs in order before starting production.

The Camaro is NOT being postponed, and it is NOT being delayed.