Chrysler Halts Production to Lower Inventory

Automaker also appears in court to lay out bankruptcy plan
By Harry Kimball,  Newser Staff
Posted May 1, 2009 3:02 PM CDT
The Chrysler Stamping Plant in Twinsburg, Ohio.   (AP Photo)
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(Newser) – Chrysler idled its plants today for 30 to 60 days to reduce inventory as the company’s lawyers appeared in a New York bankruptcy court, the Washington Post reports. The attorneys outlined a plan to emerge from bankruptcy within 2 months. “We are quite mindful of the view of many experts that no car company could survive in Chapter 11,” a Chrysler lawyer noted. “To that we say, 'yes, we can.’”

Under agreements with the company, Chrysler workers will receive partial pay while the production facilities are shuttered. The automaker’s lawyers will file motions today seeking approval to sell certain assets to Fiat, and will be in court again Monday to firm up $4.5 billion in loans from the federal government. Chrysler said dealers, suppliers, and “responsible lenders,” in addition to workers, are on board for the restructuring plan.