Motor Authority - blog Tag: job cuts

The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now... The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now accepting bids for shares of the funding. Far from a bailout, and coming up well short of the $17.4 billion already promised to U.S. carmakers, the UK loans package will be directed at helping UK car manufacturing facilities stay afloat, preserving jobs for Britain's industrial sector. A separate grant of $27 million was made to Land Rover for the production of the LRX. "There is a certain amount of cynicism by some suppliers who want to know exactly how the money will be distributed. In order to be eligible, you have to be a reasonably solid company with a specific project," a source inside the UK's Business, Enterprise and Regulatory Reform (BERR) department told Reuters on condition of anonymity. Union officials think the UK loan funds are inadequate to stanch the flood of lost jobs, however, reports The Telegraph. "Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies. This is a fraction of the support being given by almost every other government in Europe," said Tony Woodley, joint leader of Unite, the union that represents the UK's autoworkers, among others. Lord Mandelson agrees that more must be done to preserve the ailing car industry, but sees it as part of an overarching scheme to help the British economy weather the global recession. Preserving automotive jobs in the near term will be a key element in keeping Britain's economy afloat, however, as the car industry employs about 1 million people in the UK by Lord Mandelson's count. "We need to counter this to prevent an irreversible loss of capacity, skills and technology," he said. "The health of the automotive industry is vital to the strength of manufacturing in Britain and is at the heart of many of our regional economies." Read More

General Motors has notified its employees that it will reduce salaried employment globally from a current level of 73,000 to approximately 63,000 - a reduction of 14% - over the course of the year. The company will also slash compensation and benefits for its remaining salaried employees as it attempts to turnaround its losses in the lead-up to the February 17 U.S. Treasury viability presentation.

In the United States, approximately 3,400 of GM's 29,500 salaried employees will be impacted. These reductions will be made using GM separation programs and policies, which provide for severance payments, benefit contributions and outplacement... General Motors has notified its employees that it will reduce salaried employment globally from a current level of 73,000 to approximately 63,000 - a reduction of 14% - over the course of the year. The company will also slash compensation and benefits for its remaining salaried employees as it attempts to turnaround its losses in the lead-up to the February 17 U.S. Treasury viability presentation. In the United States, approximately 3,400 of GM's 29,500 salaried employees will be impacted. These reductions will be made using GM separation programs and policies, which provide for severance payments, benefit contributions and outplacement assistance. The majority of the reductions are expected to take place by May 1. GM also announced a temporary pay reduction for a majority of U.S. salaried employees. This begins May 1, and will be effective through the end of the year, when it will be reviewed. In the U.S., executive employees will have their base pay reduced by 10%, and many other salaried employees will see reductions of 3 to 7%. Salaried employment reductions in other regions will depend on staffing levels in the region and market conditions. Read More

Nissan is the latest carmaker to succumb to the effects of the global economic crisis, with the company announcing today its financial results for the third quarter of fiscal year 2008 and a massive round of job cuts. In the third quarter, the consolidated net loss after tax came to ¥83.2 billion ($0.81 billion), compared to net income of ¥132.2 billion ($1.28 billion) from the same period a year ago.

Globally, Nissan sold a total of 2,633,000 vehicles in the first three quarters of the year, down 3% compared with last year.

According to the company, the poor performance was driven by the severe downturn in the global economy in the... Nissan is the latest carmaker to succumb to the effects of the global economic crisis, with the company announcing today its financial results for the third quarter of fiscal year 2008 and a massive round of job cuts. In the third quarter, the consolidated net loss after tax came to ¥83.2 billion ($0.81 billion), compared to net income of ¥132.2 billion ($1.28 billion) from the same period a year ago. Globally, Nissan sold a total of 2,633,000 vehicles in the first three quarters of the year, down 3% compared with last year. According to the company, the poor performance was driven by the severe downturn in the global economy in the second half of the financial year as well as the negative impact of the strong yen. The continuing economic conditions have also caused Nissan to forecast a net loss of ¥265 billion ($2.58 billion) for the full financial year – the first loss for the company in nine years. The last time Nissan racked up an annual net loss was for the fiscal year ending March 2000, when it first formed an alliance with Renault and when Carlos Ghosn stepped in as CEO. Speaking at today’s profit warning announcement, Ghosn said that priorities remain on “protecting free cash flow and taking swift, adequate and impactful actions to improve business performance.” One response already has been to cut 20,000 jobs, or 8.5% of Nissan’s global work force. Of the job cuts, 12,000 will be in Japan and the rest will be overseas. Read More

The tough times facing the car industry are not new, but the extended duration is beginning to take its toll on even the most luxurious carmakers. Having already announced that it would be cutting its 1,850-member workforce by up to 600 jobs, Aston Martin has now revealed that it will put its remaining production line staff on a three day week as it struggles to cope with the economic downturn.

Aston Martin insists that the new Monday to Wednesday shift pattern is temporary and will affect just under 600 staff. The decision was made after consulting with union officials and is expected to save hundreds of jobs. The company is expecting to... The tough times facing the car industry are not new, but the extended duration is beginning to take its toll on even the most luxurious carmakers. Having already announced that it would be cutting its 1,850-member workforce by up to 600 jobs, Aston Martin has now revealed that it will put its remaining production line staff on a three day week as it struggles to cope with the economic downturn. Aston Martin insists that the new Monday to Wednesday shift pattern is temporary and will affect just under 600 staff. The decision was made after consulting with union officials and is expected to save hundreds of jobs. The company is expecting to keep roughly 1,250 staff at its Gaydon facility following the planned redundancies, reports the BBC. CEO Dr. Ulrich Bez said, “Like other premium car brands, Aston Martin has been forced to take action to respond to the unprecedented downturn in the global economy. These are regrettable but necessary measures in the extraordinary market conditions we all now face. Overall we remain confident that the Aston Martin brand is the strongest it has ever been – with dedicated design, engineering and manufacturing facilities and an award-winning product range, we remain well positioned for the upturn in the economy.” The move comes as the British government announced a potential £2.3bn tax payer bailout for the industry, which has been badly hit by the recession. The reductions also come despite the overwhelming interest in the new One-77 supercar, which was reportedly already sold out.Aston Martin One-77 Read More

The ongoing economic recession continues to impact the car industry and General Motors with reduced revenue and the need to cut production. Reducing production means cutting back on labor, resulting in today's announcement of 2,000 jobs to be cut.

Along with the lost jobs, GM will be cutting back on output of specific models and doing away with the Cadillac XLR altogether. The Chevrolet Cobalt and Pontiac G5 will both see their numbers reduced as 800 jobs leave the Lordstown plant where they are built, reports Automotive News.

Heavier losses of 1,200 jobs at the Delta Township plant where the Buick Enclanve, GMC Acadia and Saturn Outlook... The ongoing economic recession continues to impact the car industry and General Motors with reduced revenue and the need to cut production. Reducing production means cutting back on labor, resulting in today's announcement of 2,000 jobs to be cut. Along with the lost jobs, GM will be cutting back on output of specific models and doing away with the Cadillac XLR altogether. The Chevrolet Cobalt and Pontiac G5 will both see their numbers reduced as 800 jobs leave the Lordstown plant where they are built, reports Automotive News. Heavier losses of 1,200 jobs at the Delta Township plant where the Buick Enclanve, GMC Acadia and Saturn Outlook are built will mean a significant reduction in output of those models as well. The lack of available consumer credit, instability in the economy, and rising unemployment have conspired to drive down demand to very low levels. GM characterizes its production cuts as merely responsive to that drop in demand, returning the market to alignment. GM will also be instituting intermittent production halts at ten other plants in North America, nine of which are in the U.S. The halts will come during the first half of the year, and will last for several weeks. In a separate report, the Bowling Green Daily News has revealed some of the production cuts will also come from GM's Bowling Green plant, where the Cadillac XLR is built. The reductions will bring an end to XLR production. Only about 40 employees at the plant will be affected, since the XLR is a low-volume product. Despite its very niche status - only about 1,250 of the cars were sold last year - the XLR was perceived by many as a sort of halo-car for Cadillac, and the loss of the car is being felt keenly by fans. Because of its relatively high $85,000-$100,000 price point and flagging demand, however, continued production simply can't be justified from a business perspective. The reductions and cancellations aren't unexpected. Earlier today GM announced it would be delaying the Cadillac CTS Coupe until mid-2010, itself a car that is expected to slot into a similarly narrow niche as the XLR. The plant also builds Corvettes, and though 154 workers from both lines will be laid off indefinitely as of March 1, the impact on Corvette production isn't expected to be significant. Read More

Since Tata purchased Jaguar and Land Rover from Ford earlier this year, things have been looking decidedly up for both brands. Jaguar even posted its first sales increase in two years in May, largely as a result of the successful XF debut. Now, however, the realities of the global economy are catching up, with the company announcing today that 850 agency workers at the West Midlands operations will be axed.

The announcement came just hours before Jaguar-Land Rover bosses met with the British government to plead for federal aid. It also brings Jaguar-Land Rover’s total job losses for the year to 1,450. The company still employs... Since Tata purchased Jaguar and Land Rover from Ford earlier this year, things have been looking decidedly up for both brands. Jaguar even posted its first sales increase in two years in May, largely as a result of the successful XF debut. Now, however, the realities of the global economy are catching up, with the company announcing today that 850 agency workers at the West Midlands operations will be axed. The announcement came just hours before Jaguar-Land Rover bosses met with the British government to plead for federal aid. It also brings Jaguar-Land Rover’s total job losses for the year to 1,450. The company still employs roughly 15,000 people in the UK, however more jobs are expected to be shed if sales remain low, reports The Telegraph. "It is a difficult decision but it is part of us taking responsible and rapid actions for the future of the business," a spokesman said. "The car industry globally is probably the sector most severely affected by the current economic climate, and the premium end we are in is even more so." A previous cutback eliminated two shifts at the Solihull production facility, and this time both the Solihull and Merseyside plants will be affected. The Merseyside Halewood facility is expected to be idled for at least a week in the coming month to help draw down production of the X-Type and Land Rover Freelander. Despite the tough conditions - with no end in sight - Jaguar-Land Rover is planning a range of new models to help rejuvenate its product lineup, especially on the car side of the shop, and move its image back up-market. Some of those cars include an XF-R version of the XF sedan, a facelifted XKR, and an all-new generation of the legendary-but-aging XJ.2010 Jaguar XF-R2010 Jaguar XKR facelift spy shots Read More