Chrysler Shuts Down All Factories

[girl gone mad]

http://www.calculatedriskblog.com

From MarketWatch: http://www.marketwatch.com/News/Story/Story.aspx?guid={20EA3667-4149-4E76-AF74-F873264CACA4}">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: http://online.wsj.com/article/SB122953853010114835.html">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.

[dixiegrrrrl]

1. Can someone educate me about this "cash management account"?

That dealers apparently can take money out of easily.
do they put money into it?

[Citizen Number 9]

2. According to the article, above,

"Chrysler Financial allows dealers to put money into the cash management account and pays them 2% interest."

[Carter2]

3. sounds good to me

do not get me wrong. I am worried about the economy, but I do not believe a auto maker bailout is the answer. it is only the answer to those who work for the automakers. My question in this whole thing is why are the auto plants in the south doing ok financially? could it be the wages paid to those union workers are dare I say too high? guess that depends on whether you think $70/hr to drive a forklift is acceptable. Of course, this is directed at those not making $70/hr for a general labor job.

[sarcasmo]

4. When will the States Unemployment money run out?

[girl gone mad]

5. It already is. n/t