Auto industry braces for layoffs (up to 6000 jobs)

[UpInArms]

http://www.mlive.com/business/sanews/index.ssf?/base/business-0/1094221307321200.xml

excerpt:

Experts say Michigan's long- struggling economy is likely to take an unwelcome hit from new auto production cuts that General Motors Corp. and Ford Motor Co. have announced.

The state could lose as many as 6,000 jobs to temporary and permanent layoffs as the production cuts hurt the sales of suppliers and other businesses dependent on those automakers, economist Sean McAlinden said Thursday.

<snip>

The likely effects are declining home and retail sales, fewer meals eaten in restaurants and shrinking state tax revenues.

<snip>

But the biggest adjustments are at GM and Ford, which lost ground all year to foreign automakers. McAlinden said production cutbacks at those two automakers likely will result in the loss of at least 2,000 Michigan jobs and as many as 6,000, depending on the level of sales for the remainder of the year.

...more...

[MichiganVote]

1. Oh good, a stronger, safer, more hopeful America in Michigan

[annxburns]

4. As the auto industry goes ...

so goes the economy. Detroit has been pushing these incentives for so long that something somewhere has got to give. Ford and GM have huge inventory problems.

Not good.

[hatrack]

5. GM has 1.2 million unsold cars & trucks

Saw this in a news report yesterday. August sales for GM were down 14%, for Ford, down 13%, and for D/C down about 5.5%.

Rebate, schmebate - they can't give them away.

[Kukesa]

2. Hmmm. . . according to the Repuke convention,

the economy is strong and jobs are easy to find.

How could they have missed this?

<sarcasm off>

[Viking12]

6. Oh you "economic girlie-man"

how can you be so pessimistic about this "booming" economy ;)

[Yavin4]

17. Those 6000 People Gettin Laid Off Are A Bunch of Sissies

They're just not man enough to have jobs. They should pump iron and make stupid action movies.

[hang a left]

3. Last night while watching the Chargers v 49ers

a Ford commercial came on. They are having a Labor Day sale. $4-$5,000 cash back on all trucks suvs and minivans and they are giving away a free Dell computer w/flat screen for every new vehicle purchase.

[jburton]

7. They are almost giving cars away (rebates, etc)

And people STILL don't have enough $$$ to buy them, or are too unsure if they will still have their OWN job a month from now. Why risk financing a new car just to have it repo'ed in a few months?

This sucks.

[GaryL]

8. I've been expecting an even larger hit.

With debt at an all time high and most homeowner equity wrung out already, auto sales have slowed and will no doubt continue to slow. This is bad news for auto workers.

[74dodgedart]

9. Turning the corner -n/t

[SoCalDem]

10. People will not commit to long term debt,

if they have no long term security.. That's just a fact.. The people who HAD the "extra" money have already bought new cars.. The "poor folks" have bought the USED cars that the rich folks traded in.. It's trickle-down in the purest sense..

Even rich folks know that a 40K car had better last a few years, so don't count on them to keep on buying them..

My friend and I went to the mall a few weeks ago, and Robinsons-May was E M P T Y .. I think the staff outnumbered the customers 10 to 1..They had some great sales ..some as high as 70% off, and yet the store was empty.. The rest of the stores were empty too..

The only "crowded" place in the mall was the food court:puke:.. I guess people can't get enough greasy cheap food :puke:

[TX-RAT]

13. Hey SoCalDem

Them female orange cats are kinda rare, how old is she?

[The_Casual_Observer]

11. I can't imagine how shitty it will get come January

if chimp were to remain in office. With Kerry, we would start to see signs of hope and a new direction. Chimp will simply embroil us in another war and start drilling for oil in Alaska.

[MaineDem]

12. A little kick

I can't imagine these people voting for Bush. But I've been surprised before.

[indepat]

14. We've turned the corner: Everything is coming up roses for America

and Americans.

[mbperrin]

15. Woo-hoo! Look at that * job machine go!

There go some more jobs!

[Geo55]

16. Hey.....buy a chicken dinner , get a FREE SUV !!

Detroits glutony is comin' back an' bitin' 'em.
It's time to make sensible vehicles.

[Yavin4]

18. You Cannot Expect Consumers To Keep Buying Without

giving them jobs. The cheap debt era has run its course. The people who could borrow and buy have already done so. They don't have any more room to borrow.