Chrysler plans two week summer break

Chrysler LLC announced Thursday a corporate-wide, two-week shutdown in July to improve efficiency, though analysts said the measure was a cost-cutting move by the money-losing company.

The automaker typically allowed each of its facilities’ managers to determine a two-week shutdown period during the summer. But Chrysler believes it will be more efficient to shut its operations worldwide simultaneously.

Chrysler’s pickup plant in Fenton will shut down the weeks of July 7 and July 14.

However, several facilities will not participate in the mandatory July shutdown, including Chrysler’s minivan plant in Fenton. Chrysler hasn’t yet said when the minivan plan will be shut down for vacations.

Erich Merkle, vice president of auto industry forecasting for the consulting company IRN Inc. in Grand Rapids, said the announcement is symptomatic of the bumbling approach at Chrysler.

“A lot of the stuff they’re doing is trial and error,” he said. “They’re probably finding it’s more difficult to bring the cost savings out of Chrysler than they thought originally. It always looks easier from Wall Street.”