Automotive Update

The closing of Chrysler’s engine plant in Kenosha this October will leave at least 575 autoworkers jobless.  Chrysler Group LLC is the third US-based automobile manufacturer.  Despite having other engine plans in Mexico and Michigan, the announcement of the closure of its Kenosha plant shocked its employees.  The announcement was made just a week after Chrysler announced that it will keep the Detroit assembly plant permanently active.

The workers are worried of losing their jobs.  At present, the International Association of Machinists and the United Auto Workers are handling the representation of the Kenosha workers.  According to sources, several of the workers who belong in the UAW have a legitimate right to be promised of a job in other Chrysler plants that are represented by the union.

The Kenosha plant’s union leaders are optimistic that the UAW will do everything to turn around Chrysler’s decision.  Some of the workers are outraged knowing the car company plans to close the Kenosha plant while a new plant in Mexico will be opened soon and will be producing the Chrysler engines that were supposed to be manufactured in Kenosha.

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It seems to me that Chrysler can not seem to catch a break.  While they seem to have had some successes in the ways of cars coming out and some brand new models being built, I have to say that since Chrysler Financial has taken a leave and GMAC has stepped in, the dealerships are having a very hard time in meeting the terms set forth.

That is the reason that Chrysler will most likely lose upwards of 145 more dealerships just because they can not get financed at all.  The main reason?  Because GMAC is asking for more collateral than Chrysler Financial was and they are looking for the dealer to actually alter their lending structure.

In total – Chrysler has closed up about 1,000 dealerships, simply because of the financing problems this year alone.