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NEW YORK - Workers in the United States car industry are facing a summer of factory shutdowns, overtime restrictions and additional lay-offs as the worsening economy sends vehicle sales into a sharp decline.
Figures from all the major car makers showed sales in March were down in double-digit percentages compared with a year ago and industry executives said 2008 is on course to be the US's worst year for sales in 15 years. "I'd like to be able to tell you the worst is behind us but I can't really say that," Ford's marketing chief, Jim Farley, told investors, as the company revealed a 14 per cent slide in sales of cars and light trucks.
General Motors said its monthly sales had collapsed by 19 per cent and Toyota revealed a 10 per cent decline.
The market is "gripped by recession fears", said Porsche, whose sales were down 25 per cent.
The price of petrol has hit new highs, adding to the misery of drivers who are also being squeezed by a rising cost of living. Growing job insecurity is also putting people off vehicle purchases, analysts said, and car-makers are piling on special offers to try to lure reluctant buyers.
All the US manufacturers are cutting back production and many have made generous redundancy offers to long-time employees, whom they hope to replace with workers on cheaper contracts.
Chrysler said that it would shut its entire US operation for two weeks in July, putting workers on enforced leave.
- INDEPENDENT
