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Tire Industry Hurt Too, Goodyear Laying Off 5,000 Workers
 With the automotive industry being hit hard this past year and truck sales in the tank, everyone in the automotive field is effected including the tire industry. Tire behemoth, Goodyear, posted a $330 million dollar loss in the fourth quarter of 2008 compared to a $55 million dollar profit made the same quarter one year earlier. This loss has resulted in a restructuring plan for the company, aiming to cut operating costs by $700 million and in the process lay off approximately 5,000 workers. The slash comes as a second round of cuts, the first being 4,000 jobs lost in 2008.
Source: Autonews via Autoblog
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Brembo Forced To Lay Off 1,800 Employees
 Performance aftermarket brake system company, Brembo, are being forced to lay off more than 1,800 workers worldwide in Italy, Mexico, and Poland. Sources close to the company say that company orders have "fallen drastically" and any sign of recovery is grim.
Sources: Auto News & Autoblog
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Toyota Offering U.S. Buyouts, Cuts In Pay, Reducing Shifts
 Automotive juggernaut, Toyota Motor Sales USA, are now offering buyout packages to 18,000 employees in the United States and have begun cutting bonuses for nearly 3,000 white collar workers. Toyota also halted production and reduced shifts at 14 plants which include ones in Indiana, Kentucky, and Texas. Executive pay was also cut by 5 percent. The massive reductions come as a blow to the company who have seen possibly the largest sales decline in the United States in their company's history.
Sources: Reuters & MSNBC
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Nissan Posts First Loss In 9 Years, Cuts 20,000 Jobs
 The Detroit Big three are not the only automakers that are being hurt badly. Nissan have posted their first annual loss in nine years, at $2.9 billion dollars, and have also announced the cut of 20,000 jobs by March of 2010. Early retirement packages will be offered as well as dreaded layoffs and the cut of temporary worker positions.
Sources: Detroit News, Autonews
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General Motors Expected To Cut 5,000 More White Collar Jobs
 General Motors are planning to cut up to 5,000 additional salaried (white collar) jobs as part of their company wide restructuring plan that is due by February 17 to the Federal Government. GM have also offered their employees buyout packages which include $20,000 cash and $25,000 towards the purchase of a GM vehicle. GM's current workforce stands at 95,000 in North America and are looking to slash that number down to 65,000 within the next three years. More job losses to come.
Sources: Bloomberg via Autoblog, Autonews
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| | Toyota Faces Layoffs, End of the Toyota Tundra Pickup?
 Facing their first decline in automotive sales since 1995, auto juggernaut Toyota Motor Corporation may have to be forced to cut their North American payroll consisting of both white and blue collar workers which has not occurred in over 24 years for the company. One of Toyota's first steps was halting production at their Texas pickup truck factory for 15 weeks, which may lead to layoffs. “If we don’t see a rebound by the second half of next year, they’d probably have to consider layoffs" said Haig Stoddard, an analyst for IHS Global Insight Inc in Michigan. Toyota have also faced their first operating loss in 71 years of $1.7 billion dollars, due to a 13 percent drop in sales. Is it possible that the death of the Sequoia SUV and popular Tundra pickup truck are near? We shall see. Reported by Bloomberg.
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Chrysler LLC Cuts Production Too
 Due to the continued lack of consumer credit for the American car buyer and the resulting dramatic impact it has had on overall industry sales in the United States, Chrysler LLC announced that it will make significant adjustments to the production schedules of its manufacturing operations. In doing so, the Company will keep production and dealer inventory aligned with U.S. market demand. In response, the Company confirmed that all Chrysler manufacturing operations will be idled at the end of the shift Friday, Dec. 19, and impacted employees will not return to work any sooner than Monday, Jan. 19, 2009. Chrysler dealers confirmed to the Company at a recent meeting at its headquarters, that they have many willing buyers for Chrysler, Jeep and Dodge vehicles but are unable to close the deals, due to lack of financing. The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation. The Company will continue to monitor the production schedules of its manufacturing operations moving forward.
Source: Chrysler
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General Motors Requests $12 Billion in Tax Payers Dollars to Survive March 2009
 In an article by MSNBC, General Motors made the request for a total of $12 billion dollars in government aid money to help stay afloat until March of 2009. Their plan includes further eliminating jobs of up to 30,000 workers, vehicle brand reduction such as Saab, Hummer and Saturn, as well as the increased closure of 9 plants by 2012. GM is also requesting an additional $6 billion in the form of a line of credit just in case the market continues to dive. The restructuring of General Motors will focus on their key brands which include Chevrolet, GMC, Buick and Cadillac, as well as an elimination of wage increases for executive employees and grounding any executive flights. No further details have been reported.
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Chrysler LLC Cuts 5,000 Jobs with Bailout Offer
 The Detroit News is reporting that Chrysler LLC have announced a 5,000 employee buyout cut for its salaried and contracted workers, a 25 percent cut to their work force. Chrysler even made a deadline for the new cuts, giving current employees till next Wednesday to make a decision. A spokeswoman for Chrysler LLC said "Chrysler may still have to make involuntary cuts to reach its goals" and "We anticipate it to be minimal". Analysts from the automotive industry commented about the new cuts, saying it is "so large that it would affect the company's product development plans". Workers are being offered $75,000 dollar bailouts with six months of health care and a $25,000 voucher for a new Chrysler vehicle.
Just in case you were wondering, now you know where your bailout money will go come January 2009 if it passes.
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Chrysler LLC Seeks New Buyer, Forgets GM
 Chrysler LLC has decided to seek a new buyer for their failing company, leaving their talks with General Motors behind. Both companies are facing daunting challenges for recovering their businesses and both keep laying off more workers in addition to closing factories. A merger of the two companies would not benefit either one, except for Cerberus Capital Management and their own finances whom own Chrysler LLC. What may help both of the companies is not the merger itself, but economic help from the United States' Federal Government for a bailout. But that bailout will also come as an expense to the U.S. taxpayer, which is not agreed upon with taxpayers. What will happen is still to come. Reported by Freep.
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General Motors To Lay Off 3,600 Early 2009, Temporarily Shut Down 10 Plants
 In an article by the Detroit Free Press, General Motors Corporation will initiate temporary shut downs of plants and "indefinitely" lay off about 3,600 workers beginning early next year in response to the horrible financial reports released on Friday. Production will also be reduced beginning in January or February. General Motors spokesman, Tony Sapienza stated in an interview "the changes are intended to better align production with the recent steep decline in U.S. consumer demand for new vehicles". The plants that are effected by the shut down are the following: Lansing Delta Township, Oshawa, Hamtramck, Wentsville, Bowling Green, Lordstown, Spring Hill, Fairfax, Orion, and Lansing Grand River.
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General Motors Closing SUV Factories in Wisconsin and Michigan
 CNN Money is reporting that General Motors will be closing two more sport utility vehicle factories in Grand Rapids, Michigan and Janesville, Wisconsin by the end of next year, cutting nearly 3,000 jobs. General Motors spokesman, Chris Lee said the "Janesville plant's 1,200 workers represented by the United Auto Workers were told the factory would be shuttered December 23, earlier than GM had expected". Three other factories that produce pickup truck sand sport utility vehicles are on the chopping block too, set to close by 2010.
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General Motors to Close Sport Utility Vehicle Factory in Ohio, Plus Three Others
 General Motors Corporation announced Friday afternoon they will shut down their sport utility vehicle plant in Ohio on December 23rd, as the company shifts production over to smaller vehicles. Additional plants also made the list in Janesville, Wisconsin, Oshawa, Ontario and Toluca, Mexico, resulting in a loss of approximately 8,350 jobs by 2010. The decisions were made based off of an "accelerated shutdown" that is related to the company cutting costs. Reported by Detroit News.
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Chrysler Offers More Buyouts
 Chrysler LLC are the latest to offer employee buyouts of more than 13,000 jobs in increased efforts to cut costs, according to Detroit News. Chrysler have not disclosed a specific "reduction target" but officials stated they would like to eliminate at least 2,000 jobs in the near future. The cut comes in addition to the already announced 1,000 collar jobs cut to be made by the end of this month. "The latest buyout offers reflect very weak auto sales this summer" said Gregg Lemos Stein, an analyst for the Standard and Poor's rating agency. "It's very difficult for the automakers, obviously. They've had tremendous cash outflows despite their abilities to cut costs". Chrysler said of the 13,800 workers, all are eligible for the offers that will be rolled out in announcements next week.
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General Motors offers up Early Retirement Incentives to 30 Percent of Work Force
 More General Motors news folks. GM is offering retirement incentives to nearly 9,000 white collar jobs or 30 percent of its United States salaried workers. The company hopes to cut at least 15 percent in efforts to reduce costs. GM has not released any specific details about the incentives yet but some salaried workers were briefed already. Those employees said "GM appears to be offering pension payments that are better than those they would normally receive. For example, a worker age 58 is expected to receive a pension payment more like what he or she typically would receive at age 62". Those who are eligible for the early retirement plan will have 45 days to take advantage of the offer. Reported by Freep.
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Toyota Holds Off On Tundra Pickup Truck Production
 Toyota Motor Corporation have made the decision to discontinue production of their popular Tundra pickup truck at it's Princeton, Indiana plant and immediately move it to their San Antonio, Texas plant. Production will also not resume in November as previously reported. The Princeton, Indiana plant will then switch production to the Highlander sport utility vehicle as well as the Sequoia in November. The new restructuring of plants will help avoid laying off nearly 4,500 employees at the factory. Reported by the Detroit News.
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Nissan Manufacturing Employees Offered Buyouts At Tennessee Plants
 Nissan North America, Inc. (NNA) is offering a Voluntary Transition Program (VTP) to its technicians and salaried employees at its assembly plants in Smyrna and Decherd, Tenn. The plan offers employees an opportunity to receive a lump sum of $100,000 or $125,000, depending on tenure, plus medical and car purchase benefits. “We feel this program is a good opportunity for employees wanting to transition to another phase in life,” said Bill Krueger, senior vice president, Manufacturing, Purchasing, Supply Chain Management and Total Customer Satisfaction, The Americas.Full Story... 
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General Motors Places More Brands And Jobs On The Chopping Block
 After placing Hummer under review last month, according to Yahoo Business General Motors is now reviewing the status of their other brands as well, in effort to save money and cut back over head costs in an ailing United States market. The brands potentially facing the chopping block are Buick, Hummer, Saab and Saturn, as well as additional blue and white-collar job cuts within the next couple of weeks when GM's board of directors meets in August. No official comment has been made yet from the automaker.
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Ford Cuts Pickup Truck Production Again, Plans New Smaller Truck
 Yahoo Business reports that Ford Motor Company has announced they will be further cutting production of their pickup trucks and SUV's, due to extremely slow sales and high fuel prices which have devastated the industry. Production at the Michigan Truck Plant in Wayne County, which produces the Ford Expedition and Lincoln Navigator SUV's, will be shut down for approximately five weeks starting in late June. The other plant affected is the Kentucky Truck Plant in Louisville, Kentucky, which produces the F-Series Super Duty pickup, will be shut down for four weeks in July. Ford has also hinted of a new pickup truck to hit the North American Market by 2011, which will be smaller than the current F-150 and feature a more fuel-efficient engine. No further details have yet been released.
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American Axle Blocks New Deal With Three More Plant Closings
 As an update to our blog last Friday morning, General Motors Helps End American Axle Strike With Buyouts, UAW President, Ron Gettelfinger, announced Saturday that he was close to agreeing on a final deal with the American Axle strike, when that new proposal also included the shut down of three manufacturing plants. "I don't know where we're at because the company changes their position every time we turn around" Gettelfinger said in an interview over the weekend. "We have consistently offered proposals significantly higher than the agreement...And they have been consistently turned down by the UAW". As reported by Detroit Free Press.
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When Your Company Goes On Strike, Give The CEO A Raise
 American Axle & Manufacturing Holdings Inc. could not have found any other better way to piss off their employees even more, than to offer CEO, Richard Dauch, an $805,000 raise in salary, to a mere $10.2 million last year. This is after the fact that the company posted a profit of $37 million in 2007, as well as a $222.5 million dollar net loss two years ago, in 2006. Meanwhile, 3,600 of American Axle's employees have stood outside in the snow for nearly a month, striking against the company. Corporate life rocks. As posted by The Detroit News.
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General Motors Buys Out 46,000 Workers
 The Detroit News announced yesterday that General Motors Corporation will be offering buyouts to 46,000 of their 72,000 blue collar workers in the assembly plants, powertrain and stamping factories. In an effort to cut costs due to a declining demand for cars and trucks, the company plans to save $5 Billion dollars by 2011 by offering the buyouts. GM stated they will extend the buyout offers to their entire United States workforce in February, and will usher out workers in April.
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Ford Ranger Cancelled In 2009
 Reported by AutoNews, the 2009 Ford Ranger has been axed from production, saving Ford over $2 Billion dollars UAW savings. The Ranger factory, based in St. Paul, Minnisota, were lucky enough to have the closure date pushed back to 2009, saving many of them their jobs. However that will all be put to an end in 2009. For you Ranger fands, the small pickup days are over.
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General Motors Lays Off More Employees After UAW Agreement
 After news yesterday that GM has become the number one automaker again and had signed GM-UAW agreements two weeks ago, the re-crowned number one automaker announced today of 2,000 more layoffs at three major factories, as reported by The Detroit News. Those factories include 1,000 workers at the GM assembly plant in Delta Township, 767 workers at the Hamtramck plant, and up to 900 workers at their truck plant in Pontiac, Michigan. Mike Crawford, a factory worker, said "A lot of us are skeptical about how all this went down..A lot of temps and people who voted for this contract did it on the basis that their kids and families would have jobs. Then, as soon as we ratify the contract, they put them on the streets."
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Chrysler Announces Massive Layoffs
 MSNBC reports, "About 13,000 Chrysler workers — or 16 percent of the work force — will lose their jobs under a plan the struggling automaker said Wednesday would cut costs and return its U.S. operations to profitability by next year. The plan calls for closing the company’s Newark, Del., assembly plant, and reducing shifts at plants in Warren, Mich., and St. Louis. A parts distribution center near Cleveland also will be closed."
Full Story...
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Ford's Day Of Reckoning
 "Ford Motor Co. and the United Auto Workers agreed Thursday to extend buyouts to all of the company's U.S. hourly workers as the automaker prepares to announce the deepest restructuring in its 103-year history. With the future of the storied company on the line, Ford was to outline a turnaround plan this morning that's expected to include drastic job cuts, accelerated plant closings and a retooled product strategy," The Detroit News reported this morning.
Full Story...
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Cutbacks Start At Ford Truck Plant
 According to a local Louisville, Kentucky TV station, Ford Motor Company has begun temporary layoffs of 1,800 workers as they shut down a shift from one of the area's two Ford truck plants. “I’m gonna take the next buy-out if they offer it,” says 29-year Ford employee Hollis Booker. “We ain’t sellin’ near as many trucks, we ain’t doin’ that,” says Aaron Mills. “I think it’s the gas prices… I think eventually, we’re gonna get laid off.”
Full Story...
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Ford to Close Plants After Posting Loss
 According to Reuters today, "Bill Ford said on a conference call that Ford, the No. 2 U.S. automaker, was delaying until January a long-awaited restructuring announcement for its North American vehicle operations, which have lost more than $1.4 billion before taxes so far this year.
"That plan will include significant plant closings where facilities don't fit our strategy moving forward," he said.
The company previously said it would announce some restructuring measures at the time of the third-quarter earnings release."
Full Story...
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GM to Cut 25,000 Jobs & Close More Plants
 "General Motors Corp. plans to eliminate 25,000 manufacturing jobs in the United States by 2008 and close plants as part of a strategy to revive North American business at the world’s largest automaker, its chairman said on Tuesday."
Full Story... –
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Ram & Dakota Truck Plant Slows Down
 The Detroit Free Press reports, "Slower-than-expected sales of its pickup trucks will cause the Chrysler Group to shut down its Warren Truck Assembly Plant for two weeks in May and June, idling about 4,800 workers at the plant."
"Warren Truck is home of the new Dodge Dakota small pickup and the full-size Dodge Ram 1500 pickup. Chrysler has too many of both at its dealerships or on overflow lots in the Detroit area.
Chrysler was the only Detroit automaker to increase sales in 2004 and so far in 2005 -- however sales of the Dakota and Ram have been disappointing this year."
Full Story... –
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GM Plans Layoffs at Truck Plant in Linden
 General Motors announced on Tuesday that it was laying off nearly 1,000 factory workers at its Linden, N.J., truck plant and ending production of one of Chevrolet's best-known models, the Blazer.
The layoff, scheduled for early next year, was originally anticipated for summer 2005 but was pushed up because of sagging truck sales.
Full Story... –
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Ford Motor Company has announced plans to further reduce its capacity and work force, and ramp up new product introductions as it accelerates its North America “Way Forward” turnaround plan. Ford will cut its North American salaried-related work force by about a third and offer buyout packages to all Ford and Automotive Components Holdings (ACH) hourly employees in the U.S. The reductions will contribute significantly to reducing ongoing annual operating costs by about $5 billion. In addition, Ford will renew 70 percent of its North American product lineup by volume by the end of 2008.
Ford Motor Company will announce more "bold moves" through another restructuring plan tomorrow at 7am (ET). We can look forward to hearing about more plant closures, and more employee layoffs. See 
