24 Oct 2008

Car manufacturers to slash more jobs worldwide

3:45 pm on 24 October 2008

As the impact of the global financial crisis continues to spread, vehicle manufacturers in the United States and many parts of the world have announced more cuts in production and jobs.

The car industry has been one of the worst hit by the crisis.

Chrysler, the most hard-pressed of the American motor giants, is to axe a further 6% of its workforce, nearly 2000 jobs.

Hit by a slump in sales, the company is to close its Toledo factory in the US a year earlier than previously announced.

General Motors was also reported to be axing jobs.

In Europe, Italy's Fiat said that in a worst-case scenario, its profits could drop 65% and sales up to 20%. Germany's Daimler, maker of Mercedes cars, also predicted lower revenue profits and sales.

The global financial crisis has also hit Australia's oldest car finance company, resulting in the loss of 25 jobs in New Zealand.

The General Motors Acceptance Company, or G-Mac, has confirmed it is axing 185 jobs in Australia and New Zealand.

The company began operating 90 years ago as a wholly-owned subsidiary of American car giant General Motors.

So far this year, G-Mac has reported net losses of more than $A3 billion, forcing it to assess non-core operations.

G-Mac's national customer service headquarters in Newcastle has fallen into that category, with a company spokeswoman telling the ABC that 80 jobs are set to be cut there on New Year's Eve.

G-Mac says a further 80 jobs will be shelved at its other Australian locations and 25 New Zealand workers will also lose their jobs.