Chrysler Adjusts Production

Due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States, Chrysler LLC announced that it will make significant adjustments to the production schedules of its manufacturing operations. In doing so, the Company will keep production and dealer inventory aligned with U.S. market demand. In response, the Company confirmed that all Chrysler manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009.

Chrysler dealers confirmed to the Company at a recent meeting at its headquarters, that they have many willing buyers for Chrysler, Jeep® and Dodge vehicles but are unable to close the deals, due to lack of financing. The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation.

The Company will continue to monitor the production schedules of its manufacturing operations moving forward.

China’s Chery auto maker wins access to $1.5 billion loans

BEIJING (Reuters) – Chery Automobile Co, China’s fourth-largest car maker, will have access to loans of 10 billion yuan ($1.5 billion) from the China Export and Import Bank to finance overseas expansion, the Xinhua news agency reported on Sunday.

The Anhui Province-based Chery, the largest home-brand carmaker, would use the money to support its global business, such as increasing exports as well as imports of technology and equipment, according to an agreement.

Chery exported 125,000 cars in the first 10 months of this year, outnumbering the export volume for 2007. The company planned to export 400,000 cars in 2010, Xinhua said. Earlier this year, Chery said it aimed to expand sales in the Americas, first in South America and eventually in the United States.

(Reporting by Ken Wills; Editing by Kim Coghill)