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Posted

While we are at it let's throw in some more unemployment:

 

http://news.yahoo.com/s/ap/20081218/ap_on_.../meltdown_autos

 

 

DETROIT – Chrysler announced Wednesday it is closing all its North American manufacturing plants for at least a month, the starkest move taken by U.S. automakers as they anxiously await word about government loans.

 

All three companies have been taking dramatic steps as they struggle to survive the recession and U.S. sales have dipped to their slowest rate in 26 years. Chrysler and General Motors fear they might not have enough money to pay their bills in a matter of weeks.

 

Attempting to cut costs, GM was halting construction of a plant tied to one of its most important projects, the Volt. Ford also said it will shut down 10 plants for an extra week in January because of sluggish sales.

 

Chrysler said it would extend the normal two-week holiday shutdown that begins Friday to at least Jan. 19 at all 30 of its factories due to slumping sales.

 

The lack of consumer credit is hampering sales and forcing the production cuts, Chrysler LLC said in a statement. Chrysler, Jeep and Dodge dealers say they have willing buyers for vehicles, but they can't close the deals, Chrysler said.

 

"The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation," the statement said.

Posted
30 plants shut down for a month. Not a good sign.

 

But necessary since demand is currently not there. You can't keep making cars if people are not willing or in a position to buy them.

Posted
And went from deflation toward hyperinflation?

The Eurozone and Asia will see their export-based economies implode soon enough and they'll be cuting their rates too, which should provide support for the dollar.

 

We'll worry about inflation once the fire is put out...

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