CarBuyersNoteBook

Struggling U.S. automaker Chrysler LLC shut down two of its plants January 3rd only two weeks after finally reopening them at the end of an extended Christmas break. The Detroit-area factories that were shut down again manufacture the Chrysler Sebring and Dodge Avenger, Jeep Grand Cherokee and Commander, and Dodge Ram 1500 and Dakota. Chrysler, easily the most crippled of the Detroit Big Three, finished the first month of 2009 with a 55% decline in sales and a 151 day backlog of unsold vehicles.

A backlog of 60 days worth of cars is considered normal. “It’s always about managing product and dealer inventory,” Chrysler spokesman Dave Elshoff said. “If dealer inventory is high, we’re not going to build on inventory.” Chrysler has been asking its dealers to buy the backlogged cars outright to help it stay solvent. Although Chrysler received a $4 billion government loan in December, it needs another $3 billion just to survive. Chrysler said it will reassess production at two week intervals.