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US auto suppliers issue warning, cut jobs
Two leading US auto suppliers underscored on Friday the scope of the auto industry's problems when one said it would cut thousands of jobs and another withdrew its financial forecast for 2008.
- Reuters
- Published: 22:40 December 20, 2008
Chicago: Two leading US auto suppliers underscored on Friday the scope of the auto industry's problems when one said it would cut thousands of jobs and another withdrew its financial forecast for 2008.
Federal Mogul Corp said it would cut 4,600 jobs from its already reduced workforce in response to what it called "continued challenging conditions" in the global automotive market.
And Visteon Corp said it would withdraw its already reduced sales forecast for 2008 because of "larger than anticipated declines in global vehicle production and overall industry uncertainty".
On Friday, the US government said it would give $17.4 billion (Dh63.90 billion) in loans to General Motors Corp and Chrysler LLC, both of which have said they desperately needed cash infusions to survive. Businesses such as parts makers that are reliant on the auto industry have seen declining profits as vehicle sales plummeted worldwide.
Federal Mogul, which makes pistons, spark plugs, bearings and other parts, did not say on Friday which of its factories would be affected, but it said the job reductions would start in the first quarter of 2009.
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