RE: Dodge brand is on life support
Just posted on autoblog.com Not good for us FUTURE CHallenger owners !
Chrysler supposedly in 'chaos', suppliers could demand COD
Posted Dec 6th 2008 11:57AM by Chris Shunk
Filed under: Chrysler, LLC.
GM is getting the lion's share of the glaring national spotlight due to the immediacy of the company's cash crunch, but Chrysler's situation is easily just as dire. Employees at the Pentastar know this, as evidenced by the fact that a full 25% of its salaried workforce took voluntary separation packages to get while the getting is good. Those 5,000 people weren't just sitting around at Chrysler headquarters, though. They had responsibilities, and Automotive News and the Dow Jones News Service is reporting that chaos is settling in due to the personnel vacuum.
The report cites three sources with knowledge of Chrysler's supplier dealings as saying that suppliers are nervous about bankruptcy, and as a result may beginning to ask for cash on hand in return for parts. A Chrysler spokesperson called the 'chaos' term unwarranted, and said that the loss of jobs will help the company to "continue the transformation of our company." Mega-supplier Borg Warner, for one, told Automotive News that all of the Detroit automakers are currently paying their bills on time, and there have been no reports of Chrysler not paying any large suppliers.