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U.S. automakers hope Obama will bring aid

By The Associated Press Published: November 6, 2008
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/> Spokesman Tom Wilkinson called the announcement a routine update. The e-mail did not give specifics and Wilkinson said he could not comment on them.

"We need to talk about what we’ll do to face the challenges,” he said.

U.S. market dwindles

Industry analysts expect GM and Ford to make further factory job cuts to match an ever-dwindling U.S. market.

Analysts say GM could close more plants, but Ford said it likely will do temporary factory shutdowns and overtime cuts at some of its car plants.

GM is talking with Chrysler majority owner Cerberus Capital Management LP about GM acquiring Chrysler.

GM reportedly is after Chrysler’s roughly $11 billion cash stockpile and is seeking federal aid to make the deal happen.

But a person briefed on the GM-Chrysler talks said Wednesday that no announcement of a deal is imminent because much of it hinges on federal aid. The person asked not to be identified because the talks are private.

A further indication of GM’s woes came Wednesday when its auto financing arm, GMAC Financial Services, reported a $2.52 billion third-quarter loss. GMAC is 51 percent owned by private equity firm Cerberus, while Detroit-based GM holds the rest.


Auto jobs

The Center for Automotive Research published a report Wednesday estimating that about 2.5 million jobs across the economy would disappear in the first year if the U.S. auto industry shrinks by 50 percent. Only 239,000 of those job losses would be at the Detroit Three — the remainder would be at parts suppliers and other related industries, the center said.

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