Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, February 19, 1991 TAG: 9102190036
SECTION: BUSINESS PAGE: B4 EDITION: METRO
SOURCE: Associated Press
DATELINE: DETROIT LENGTH: Medium
"There are some severe capacity problems right now," said analyst Harley Shaiken, labor professor at University of California at San Diego. "I think we will clearly see more shutdowns."
This week, Chrysler is operating four U.S. assembly plants, two for trucks and minivans and two for cars, said company spokesman Alan Miller. He was uncertain if the corporation planned another complete work stoppage of its U.S. car assembly plants.
Analysts say a nationwide recession is causing a depression in the auto industry. They also said dwindled consumer confidence and uncertainty because of the Gulf War have contributed to the gloomy market.
"A number of things are coming together all at once," Shaiken said Monday. "The auto industry is clearly in a depression. This shutdown is a particularly dramatic statement of how deep the troubles in the industry are."
Domestic car and truck sales are running about 26.5 percent behind last year's pace, which also was slow, officials said. Chrysler sales were estimated to be running 32.8 percent behind last year.
The trade journal Ward's Automotive Reports said auto makers had 91 days worth of new cars on hand as of Jan. 31, compared with 74 days' worth the month before, based on usual sales.
Shaiken said he expects temporary shutdowns to continue until the war or recession ends.
At Ford, spokesman Joel Pitcoff said the No. 2 automaker had no plans for a similar shutdown.
"It's a difficult time to operate plants for everybody, but I can't imagine such a situation developing for us," he said. "The dealers are giving us enough orders to support production across the board."
GM spokesman John Maciarz said the No. 1 automaker planned occasional plant shutdowns, but none across the board.
by CNB