There is more bad news from the auto industry today as Chrysler announces that it will cease production at all of its 30 manufacturing plants in the United States for one month. As you know the big three are struggling. The reality is that if one of these major automakers goes under, it is estimated that millions of jobs will be lost, and that could have a great impact on the economy.
It is hard for me to imagine that one day there will be no more American cars. But, if the bailout money is not distributed to the big three automakers, you might just find the American car brand extinct.
However, the foreign automakers are also feeling the pinch. Nissan and Toyota announced that their sales are down. The ripple effect will not only impact the auto industry but it will effect suppliers such as parts companies that rely on the business of the automotive industry to thrive.
Currently, Chrysler has its own financing system, but with the poor economy and fewer people buying cars that system is suffering. Overall, Chrysler believes that it is necessary to close its plants to save money in general. But, the notion of filing for bankruptcy is still looming.