Business

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GM Cuts Jobs, Highlighting Troubles Ahead for Automakers

April 29, 2008 03:19 PM
by findingDulcinea Staff
Declining truck sales force General Motors to cut over 3,000 jobs. Will the world’s largest automaker ever fight its way back to the top?

30-Second Summary

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Plants in Wisconsin, Michigan and Ontario will be affected by the layoffs, which are scheduled to take place in July and September.

According to a story in The Chicago Tribune, soaring gas prices and the housing slump are to blame for falling sales of large trucks. In March, sales of GM’s full-size pickups were down 18 percent, and large SUVs were off 29 percent.

The news comes on the heels of the latest United Automobile Workers union strike, which forced GM to shut down some of its factories.

But while GM blames the economy for the downturn, others fear the company—and the auto industry in general—faces greater losses ahead.

The immediate outcome of the layoffs will be “devastating,” said Chris Buckley, an automakers union president in Canada. “There are going to be thousands of working people affected by this, and thousands of their families.”

Headline Links: GM to cut over 3,000 jobs

Related Topics: Automakers face tough road ahead

Background Information: UAW strikes

Reference: GM and the UAW

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