Chrysler LLC to Completely Shut Down for Two Weeks in July!

We can’t say that we weren’t expecting surprise moves from Chrysler LLC’s new owner Cerberus Capital Management LP, but to shut down the entire company for two weeks in July during the period when it usually closes only its assembly plants, is definitely a shocker. Chrysler LLC informed its employees of its shut down plan this morning (Thursday, March 13) in an e-mail that was sent by Chief Executive Officer Robert Nardelli.

This is the first closure for the struggling No. 3 U.S. automaker since its acquisition from Cerberus, as it attempts to cut costs and preserve cash. “This is a drastic cost-cutting step,'' said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. “Having the shutdown will be favorable to Chrysler's cash flow, but it's a drop in the bucket compared to what is required to stabilize Chrysler's financial footing.'' (Pic edited by Carscoop)

Via: Bloomberg