Chrysler, Ford Idle Plants; GM Halts Engine Factory

Chrysler LLC will shut all 30 of its plants for at least a month starting Dec. 19 as unsold cars and trucks pile up at showrooms. Ford Motor Co. said it will idle most of its North American assembly plants for the first week of January, while General Motors Corp. said a new factory making engines for the Chevrolet Volt electric car is being delayed to conserve cash.

The cutbacks showed how far automakers are going to save money and prune output in a year in which industrywide U.S. sales are poised to fall to their lowest levels since 1991. GM and Chrysler say they may run out of operating funds in just weeks without emergency U.S. aid.

“Vehicle manufacturers are going to closely align their demand with supply," said Michael Robinet, an analyst at CSM Worldwide Inc. in Northville, Michigan. “You are finding that these inventory correction actions are not only taking place at Chrysler but with all the vehicle manufacturers."