DETROIT — With their employers poised to announce billions more in losses and further job cuts today, it’s worry time once again at General Motors and Ford factories across North America.
Both companies are spending billions more than they’re making amid the worst economic crisis in decades. And both say factory production needs to reflect declining sales, which means job cuts.
According to Ford’s top sales analyst and two people briefed on GM’s plans, neither automaker is planning to announce factory closures, although they are likely to cut production by eliminating shifts or instituting overtime bans or temporary plant shutdowns. The people did not want to be identified because GM’s plans are confidential.
GM also is expected to slow its product-development schedule, delaying some models and engines at least for a short time.
Automakers appealed to congressional leaders Thursday for $25 billion more in federal loans, low-interest emergency borrowing and a share of the Wall Street bailout to help rescue an ailing industry battered by the economic crisis. GM, Ford and Chrysler pledged to work with House Speaker Nancy Pelosi and Senate leader Harry Reid “to ensure immediate and necessary funding to keep the auto industry viable and its transformation on track during this critical time,” according to a GM statement.
Pelosi told The Wall Street Journal that Democratic leaders are considering several options to help the industry, including tax credits to encourage the purchase of new vehicles and additional financing beyond the $25 billion in loans approved by Congress in late September.
“We have an industry — forget the companies — an industry in our country that is at risk,” Pelosi said.
Ford and GM are expected to report huge losses when they release third-quarter results this morning.
