Chrysler to Slam Brakes on Manufacturing for a Month (or More)

Chrysler will idle all manufacturing operations for at least a month, with assembly-line shutdowns beginning at the end of tomorrow’s shift. The smallest of the Big Three said Wednesday workers will not return to factories any sooner than Jan. 19 — a significant extension of the automakers’ typical two-week holiday slowdown — “due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall sales in the United States.”

In September, Chrysler unveiled plans for a line of plug-in hybrids and electric vehicles. The company said 100 vehicles would roll out in government and commercial test fleets in 2009, and production of at least one consumer-market model would begin in 2010.

With 2009 off to such a rocky start, the timeline may change (although it shouldn’t come as a surprise: shortly after the EV announcement, Chrysler revealed to dealers that it had already lost $400 million in 2008, leaving few resources for R&D on the new line). Then again, Chrysler’s Big Three comrade/rival GM confirmed it will stop work on a parts factory for its Chevy Volt and Cruze, but said it does not expect it to affect the delivery schedule.

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