Chrysler, the automaker company has decided to shut down for a one month period. All thirty plants in the United States of America will be shut down this coming Friday, December 19th, 2008 and they will be re-opened on January 19th, 2009. All employees will be asked not to show up for work on days in-between these dates.
These actions taken are in response to the deteriorating market. As consumers have lessened the amount that they buy Chryslers products at, the dealers have not been able to buy as much from the automakers. Subsequently the auto parts industry is falling too.
A total of 46 000 employees will be workless for this month. During this time, through both state unemployment bursaries and contributions from Chrysler the workers will receive pay, but it will not be as much as they would normally be paid. This will cause many implications for these workers and will most likely worsen the declining economy. This is figured because these workers will not have enough money to buy many things, which will inevitably put other jobs and investments at risks as cash flow in the United States is low and will grow lower. This will turn into a vicious cycle.
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