Analyst: 'Brutal' January for automakers

DETROIT, Dec. 18 (UPI) -- U.S. automakers Ford and Chrysler said they would cut production schedules in response to slumping sales, taking steps similar to General Motors Corp.

Chrysler LLC said it would extend the traditional two-week winter break at all U.S. factories to at least a month, CNNMoney reported. Ford Motor Co. said Wednesday it would stop producing cars at 10 plants for an extra week in January.

GM announced last week it would temporarily close 20 factories and lower production by 250,000 vehicles in the first quarter of 2009.

"We look at it on a plant-by-plant basis," GM spokesman Chris Lee said.

The industry is reeling from sales that fell 37 percent in November. Honda Motor Co. also said it would slow production by 119,000 vehicles for their fiscal year that ends March 31.

Toyota Motor Corp. has also announced cuts.

"January is going to be brutal," said Jim Gillette, an industry analyst at CSM Worldwide.

Production scalebacks at GM and Chrysler are part of an effort to convince Washington they are serious about finding a profitable production schedule. The companies are negotiating with White House and Treasury officials for a bailout package as depleting cash reserves have them nearing bankruptcy.