The Cerberus Capital Management LP-owned automaker, which has warned it could run out of cash in the first quarter absent government assistance, in a statement blamed the production scale back on "the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States."
Chrysler said that its dealers have told them they have willing buyers, but are unable to close deals due to the lack of financing. The company said dealers believe they have lost upwards of 25% of their volume because of the credit situation.
The comments seem to stand in contrast to remarks by Ford Motor Co. executives Tuesday that after bleak October and November sales appeared to be rebounding in December. But Chrysler's decision could also relate to the company's efforts to heal relations with its dealers still stinging from its decision in 2006 to keep production up despite falling demand, a choice that created a stockpile of more than 100,000 unsold vehicles sitting on lots that summer. -
Lou Whiteman See Chrysler's statementSee Dealscape post with Ford's commentsSee Dealwatch: AutosSee Dealwatch: Detroit Breakdown
Facing a growing glut of cars on dealer lots, Chrysler LLC said late Wednesday it will idle its manufacturing plants from Dec. 19 until at least Jan. 19. 
