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Chrysler to shut down for 2 weeks

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  • Chrysler to shut down for 2 weeks

    Chrysler LLC said on Thursday it would shut all but its most essential operations worldwide for two weeks in July, a first for the struggling No. 3 U.S. automaker as it attempts to cut costs and preserve cash.

    Chrysler, which is in a restructuring that includes trimming some vehicle lines and offering buyouts to its 44,000 U.S. hourly workers, lost $1.6 billion in 2007.

    The automaker has been accelerating its restructuring efforts since Cerberus Capital Management LP acquired a nearly 80 percent stake from Daimler AG last summer.
    link

  • #2
    Some race tracks ought to be making a pitch to give those folks something to do during their forced vacations!
    We flipped our finger to the King of England
    Stole our country from the Indians
    With god on our side and guns in our hands
    We took it for our own!

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    • #3
      I realize this is categorically a "first", but they typically shut down plants on an annual basis for short periods of time - but probably never shut everything down at once.

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      • #4
        Originally posted by MoparsRule
        I realize this is categorically a "first", but they typically shut down plants on an annual basis for short periods of time - but probably never shut everything down at once.
        They usually only idle the union guys - this puts the salaried folks on vacation also.
        We flipped our finger to the King of England
        Stole our country from the Indians
        With god on our side and guns in our hands
        We took it for our own!

        Comment


        • #5
          Originally posted by step33T
          They usually only idle the union guys - this puts the salaried folks on vacation also.
          And they don't close all of the plants at once.

          But I guess you can do that when you have no hot selling models!

          I am so glad that I don't work for a company in the automotive sector anymore.

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          • #6
            One of the things about Just In Time logistics/manufacturing, is that no plant has more than a few days of parts inventory. Now, if you shut one down, you might as well shut them all down.

            Originally posted by jdessar
            And they don't close all of the plants at once.

            But I guess you can do that when you have no hot selling models!

            I am so glad that I don't work for a company in the automotive sector anymore.
            "I have examined all the known superstitions of the world and I do not find in our particular superstition of Christianity one redeeming feature. They are all alike founded on fables and mythology."
            Thomas Jefferson

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            • #7
              if JIT is done right, a plant would not have more than a few HOURS worth of parts for assembly.
              http://danwheldon.shutterfly.com/

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              • #8
                Originally posted by 9rows
                if JIT is done right, a plant would not have more than a few HOURS worth of parts for assembly.
                All JIT really does is shift the cost of inventory from the car companies to their suppliers.

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                • #9
                  Originally posted by jdessar
                  All JIT really does is shift the cost of inventory from the car companies to their suppliers.
                  Yep.
                  "It was actually fun, because you're back fully driving again in these trucks. Ninety percent of the tracks we go to in the IRL, you're flat-out. I was having to lift off the corners some here." - Buddy Rice

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                  • #10
                    Originally posted by Jim Wilke
                    Shouldn't affect NASCAR, those Chargers are already built.

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                    • #11
                      Originally posted by jdessar
                      All JIT really does is shift the cost of inventory from the car companies to their suppliers.
                      Are you saying there is something wrong with that?
                      We flipped our finger to the King of England
                      Stole our country from the Indians
                      With god on our side and guns in our hands
                      We took it for our own!

                      Comment


                      • #12
                        Originally posted by step33T
                        Are you saying there is something wrong with that?
                        What's stupid about the auto industry (among other things) is that they drive costs down to the suppliers, ransom them for huge price cuts, and then have to come in and rescue them when they finally drive them to bankruptcy.

                        Aside from that, it's a great relationship.

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                        • #13
                          Originally posted by jdessar
                          What's stupid about the auto industry (among other things) is that they drive costs down to the suppliers, ransom them for huge price cuts, and then have to come in and rescue them when they finally drive them to bankruptcy.

                          Aside from that, it's a great relationship.
                          You're talking specifically about the auto industry - gotcha. I was thinking along the lines of JIT in general - which I believe to be a solid business practice.

                          And I can understand that concern from the ransom/bailout perspective. Which just proves how our auto industry can take a good idea and make it a bad thing.

                          Again, as a general principle, running JIT at the assembly line is crucial for keeping costs down. Properly executed of course!!

                          The supplier should then do what they need to do in order to also keep their costs low.

                          Now, where that becomes a negative IMHO - is when the automaker starts dictating HOW the supplier cuts their costs. While I despise Wal-Mart, they do some interesting things with their supply line that I admire. That admiration dies when they start telling the suppliers how to run their businesses.
                          We flipped our finger to the King of England
                          Stole our country from the Indians
                          With god on our side and guns in our hands
                          We took it for our own!

                          Comment


                          • #14
                            Originally posted by step33T
                            ...That admiration dies when they start telling the suppliers how to run their businesses.
                            That concept goes all the way back to Henry Ford and the Model "T". Ford required that one of the suppliers pack their shipments in wooden crates of a certain specification. Why? Because those "crates" were then used for the floorboards of the car on the assembly line. Free materials.

                            roach

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                            • #15
                              Originally posted by jcroche
                              That concept goes all the way back to Henry Ford and the Model "T". Ford required that one of the suppliers pack their shipments in wooden crates of a certain specification. Why? Because those "crates" were then used for the floorboards of the car on the assembly line. Free materials.

                              roach
                              And I'm certainly not defending such a practice. I'm merely defending JIT as a principle.

                              Ripping off the suppliers can't really be blamed on JIT itself. That problem lies squarely with plain old bad management - something our automakers have in abundance.
                              We flipped our finger to the King of England
                              Stole our country from the Indians
                              With god on our side and guns in our hands
                              We took it for our own!

                              Comment

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