RE: Dodge shutting down
Quit worrying! The hard part is over, Ma Mopar and GM have bridge loan money coming after they sign on the dotted line Dec. 29. Trust me, the CEOs and investors are breathing a sigh of relief. Even Canada threw in $4 Bill on top of the U.S.'s dough. That is a good sign for us GM and Mopar collectors and lovers. I heard Germany was doing the same for GM's Opel division, but they were waiting until the U.S. got off their larthagic arses and got over the Republican protectionism of the South's foreign auto industry.
Closing the plants down for a month is a good defensive move for Chrysler. The econ is tanking right now and this protects their working capital. Why should they keep building inventory (and financing it) and then give it away in a few months, like they have with their left over 08 models? Doesn't make much sense does it? What they have to do is survive the rest of the 09 model year and get to next fall.
They will still make the Challenger next year. It should be clear to the Chrysler powers that be the Challenger is a hit and there is a demand for it. Do you think their dealers are whining about Chall. sales when most of them won't come off the sticker price and many demand above sticker? It's the hotest car out there right now. Think the new restyled Stang is going to set the world on fire-No Way Jose! The new Camaro will likely sell well, if people have enough balls to buy one given their job situations.
I work for the world's largest construction equipment manufacturer in Peoria, IL. They have been enjoying a five year run-for-the-profits and sales (enjoyed record profits and sales year after year) thanks to growth of the world's econ and infrastructure. Their orders suddenly went down in November (and were cancelled) and they have a few indefinite lay-offs in their manufacturing facilities and temporary dept. shut downs. They are in great shape financially compared to GM and Chrysler, but does that mean you won't be able to buy a D10 dozer in 12 months? Heck no. They are cutting inventory by temporarily curtailing production, same as Ma Mopar. I am right there on their factory floor, running CNC machines.
What we need is for the econ to bottom out (layoffs stop). Get the new administration and congress in place and put them to work on the econ. It's going to take time to get it started the other way, but it will if we remain proactive as a country. It really sucks that our econ is where it's at today. Lack of oversight in the banking industry is the big culprit and stupid people borrowing too much money is another culprit. Guess true capitalism was a failure.