Monday September 25, 2006

Disintegration of iconic Big Three US automakers accelerates

channelnewsasia.com :

In a city struggling to deal with the slow disintegration of the iconic General Motors and Ford, Chrysler was the shining star whose bold designs could beat out the Asian competition. That star fell to earth last week with the announcement of major production cuts amid a sharp drop in demand for the trucks, minivans and sport utility vehicles that accounted for 71% of its unit sales. The consequences will be felt across the United States where an estimated 13.3 million jobs are dependent upon the automotive industry.

More than 60,000 high-paying union jobs at GM and Ford will be lost as the two giants undergo massive restructuring plans in the face of a steady loss of market share that accelerated as consumers shied away from the highly profitable but gasoline guzzling trucks and SUVs that the Big Three relied upon. Ford had its ratings cut deeper into junk status by both Moody's and S&P last week and is now considered to be equally or perhaps even more at risk than General Motors.

See also :

1. Ford to cut 14000 jobs, close 16 factories
2. Production cuts : Ford, GM, Chrysler
3. Honda, Toyota and soaring gasoline prices

(2006-09-25 18:05:15 SGT) [Biz] Permalink

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