Autoblog

REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts

Chris Paukert — Mon, 09 Feb 2009 10:27:00 EST

Filed under: Trends, Hirings/Firings/Layoffs, Japan, Nissan, Earnings/Financials

Nissan hasn't posted an annual loss in nine years, but the automaker is poised to take a big hit on its 2008 earnings, and like the rest of the industry, it is scrambling to restructure. The Japanese carmaker is expected to report a $2.9 billion shortfall, prompting Carlos Ghosn and his team to chop 20,000 jobs - fully 8.5 percent of its employees worldwide. Some of the job losses will be arrived at through early retirement packages and the ending of temporary worker contracts, but most will be out-and-out layoffs. The personnel cuts will leave Nissan with 215,000 workers globally and take place now through March of 2010.

Nissan's planned cuts are markedly more aggressive than those employed by other Japanese automakers, suggesting that Japan's third-largest automaker is even more pessimistic about the potential for near-term economic gains. That appears to be particularly true in its domestic market, where the strong Yen and other factors have conspired to result in 12,000 of the planned job losses. Thanks for the tip, Karen!

[Source: Associated Press via ClockOnDetroit | Image: Akihiro I/Getty

REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts originally appeared on Autoblog on Mon, 09 Feb 2009 10:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Hertz so bad: Car rental agency to shed 4000 jobs

Chris Shunk — Sat, 17 Jan 2009 12:34:00 EST

Filed under: Earnings/Financials

Over the years, when automakers had trouble selling enough vehicles to keep assembly lines cranking, they sold the leftovers to rental car companies. Unfortunately, when the world is embroiled in a nasty economic recession, people don't travel. And when nobody's traveling, the rental car industry takes a dive into the crapper. Hertz, the second largest rental car company in the States, is feeling the pinch along with 12% of its workers. Hertz will cut 4,000 employees in the first quarter, saving the company up to $170 million in 2009. The move to eliminate staff comes after a third-quarter profit of only $17.7 million; 89% lower than in 2007. Hertz will take a one-time charge of up to $25 million in the fourth quarter to pay for the layoffs, which means the balance sheet for the last three months of 2008 aren't going to be pretty.

[Source: Bloomberg]

Hertz so bad: Car rental agency to shed 4000 jobs originally appeared on Autoblog on Sat, 17 Jan 2009 12:34:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Nissan cuts profit forecast by 66%, will cut workforce

Chris Shunk — Fri, 31 Oct 2008 18:01:00 EST

Filed under: Hirings/Firings/Layoffs, Nissan, Earnings/Financials

The entire auto industry is hurting right now, and financial news from Nissan today is the latest evidence to support that overused statement. Nissan announced that it's shifting profit forecast for the fiscal year ending March 31, 2009 down by 65.9% (!) to $2.62 billion. To keep inventory in line with reduced demand, Nissan is also cutting its annual production forecast by 200,000 units and will shed 3,500 jobs. The U.S. job losses will come from a previously announced voluntary buyout program and 1,000 jobs will be shed in Japan where layoffs are much less frequent. The automaker's new global sales goal for the year is 3.77 million units, which is down from the latest estimates of 3.9 million cars and trucks and about even with last year's sales. Nissan is far from alone in its current struggle, as Honda, Toyota, Mitsubishi and Mazda are also struggling to keep sales afloat, with most of their troubles centered on the ailing North American market.

[Source: Automotive News, sub. req'd]

Nissan cuts profit forecast by 66%, will cut workforce originally appeared on Autoblog on Fri, 31 Oct 2008 18:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford meets salaried cuts

Chris Shunk — Thu, 07 Aug 2008 09:27:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

For white collar workers that still work at the Ford Motor Company: congratulations, you've officially made the cut. Ford's President of the Americas, Mark Fields, announced at a media event that the Blue Oval has successfully achieved its targeted cuts, at least for now. Fields told reporters that Ford would "continue to look at our structure and evaluate that versus the external environment," which is fancy executive talk for "if we don't start making some money, we'll cut some more." Fields didn't reveal the exact number of cuts that were made to achieve that goal.

Ford announced in June that it would cut 15% of its salary-related costs in an effort to become more lean and conserve cash during the brutal automotive downturn. Ford is trying to conserve enough Bennies to pay for its ambitious powertrain plans that will be needed to help the Dearborn, MI automaker offer the fuel efficient vehicles customers want. Fields said that spending on engines and transmissions over the next couple years will be "unprecedented," and that Ecoboost, diesels, hybrids, and other fuel-saving technologies will get the lion's share of the spending. Ford also plans to convert three truck and SUV factories to small car production and add six European models to its product mix.

[Source: Reuters]

Ford meets salaried cuts originally appeared on Autoblog on Thu, 07 Aug 2008 09:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Chrysler cutting 1,000 white collar workers

Chris Shunk — Wed, 23 Jul 2008 18:22:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Dodge, Jeep

Chrysler is losing money by the truck-load, and its vehicles aren't selling, so common sense dictates that team Pentastar was going to start making cuts soon. That time is now, when Chrysler notified workers that it would be cutting 1,000 white collar workers. Chrysler spokesman David Elshoff told employees that the company would achieve its cut target through retirements, attrition, and buyouts, which means people won't be handed boxes and receive security escorts just yet. Chrysler management is making the cuts with the belief that the current economic situation here in the States isn't going to improve any time soon. A quick look at the Pentastar's car lineup shows the privately owned company would be in trouble even if the economy had a rosy outlook. No timetable was given for the white collar cutback.

[Source: Detroit News]

Chrysler cutting 1,000 white collar workers originally appeared on Autoblog on Wed, 23 Jul 2008 18:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

More job cuts for Chrysler, white collars beware

John Neff — Tue, 09 Oct 2007 15:05:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, UAW/Unions

Chrysler's deadline to hammer out a new contract with the UAW expires tomorrow. If common ground cannot be found by tomorrow morning at 11AM EST, the UAW could strike again. As if that weren't heavy enough news for the newly rebranded Chrysler LLC, it's being reported today that more job cuts are on the way for some 1,600 non-union workers. Though Chrysler's turnaround plan called for shedding 13,000 jobs by 2009, of which 2,000 were non-union, salaried white collar positions, the automaker is reportedly planning to lose an additional 500 salaried positions and 1,100 contracted jobs.

Though Chrysler did not comment to The Detroit News about the job cuts, one has to wonder whether or not these new non-union job cuts are being used as a bargaining tool to show the UAW that it's not just union members who are being asked to sacrifice for the greater good.

Sources from inside those contract negotiations are signaling that a strike may be likely as Chrysler is not in a position to offer the UAW an agreement similar to its tentative one with GM. For one, Chrysler's new owner, Cerberus Capital Management, is reportedly unwilling to offer the same level of job security by promising future products to U.S. plants like GM did. Chrysler also wants health care concessions it wasn't offered back in 2005 when similar concessions were given to both GM and Ford.

[Source: The Detroit News]

More job cuts for Chrysler, white collars beware originally appeared on Autoblog on Tue, 09 Oct 2007 15:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford Credit looking for its own Way Forward

Damon Lavrinc — Fri, 29 Sep 2006 17:26:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

The cutting and slashing continues over at FoMoCo's finance arm, Ford Motor Credit. On Tuesday they announced the closing of 59 offices within the U.S. and the elimination of 2,000 jobs from its 8,500 strong workforce in the United States and Canada. Additionally, the number of regional offices within North American will be reduced to six.

The process will continue through 2007, during which time the employees chosen to stay will either be transferred to another location or allowed to work out of home offices.

Hopefully, for Ford Motor Credit's employees, this should be the last stage of Ford's consolidation that began in 2002 and has cut over 6,000 jobs over the last four years.

The full press release can be viewed after the jump.

Continue reading Ford Credit looking for its own Way Forward

Ford Credit looking for its own Way Forward originally appeared on Autoblog on Fri, 29 Sep 2006 17:26:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Another 10,000 job cuts at Volkswagen?

Stuart Waterman — Mon, 19 Jun 2006 17:31:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Plants/Manufacturing, Volkswagen

Rumors brought to light by German newsmagazine Der Spiegel suggest that Volkswagen's job cuts at its western Germany factories may eventually total 30,000, 50 percent more than the 20,000 target currently on the table.

Apparently, the cuts would be necessary to increase production efficiency for the next-generation Golf at the Wolfsburg plant. As with the current round of job reductions, the additional cut would be accomplished via early retirement and voluntary termination programs. (Under an agreement with local governments in Germany, the company cannot impose involuntary layoffs before 2012.)

VW's Wolfsburg employees had hoped that the new Scirocco would be built there, only to learn that production is planned for a more efficient plant in Portugal.

[Source: Quattroruote]

Another 10,000 job cuts at Volkswagen? originally appeared on Autoblog on Mon, 19 Jun 2006 17:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Take the money and run - GM employees opting for buyout

Stuart Waterman — Thu, 15 Jun 2006 13:51:00 EST

Filed under: Hirings/Firings/Layoffs, GM

It looks like General Motors will have no problem meeting its goal of cutting 30,000 jobs in the U.S., according to United Autombile Workers president Ron Gettelfinger.

With about a week to go before GM's employee buyout offer expires, about 25,000 UAW members have signed up (around 22 percent of the UAW's GM membership) and Gettelfinger expects the final number to be at least 30,000. Another 8,500 workers at bankrupt auto parts supplier Delphi have accepted buyout offers, more than a third of its UAW membership. Delphi is planning eventually to cut 14,000 UAW jobs.

[Source: New York Times]

Take the money and run - GM employees opting for buyout originally appeared on Autoblog on Thu, 15 Jun 2006 13:51:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ford sends not-so-funny joke to fired worker

John Neff — Mon, 12 Jun 2006 15:07:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

Michael Stawasz was one of 4,000 salaried workers at Ford who lost his job last January when the company launched its Way Forward restructuring plan. Stawasz was nine months short of his 30th anniversary with Ford, which meant he narrowly missed being able to retire with full benefits. About two dozen other ex-Ford employees are suing the company to get the benefits they feel they've earned, so imagine Stawasz's surprise when he received the above certificate in the mail along with a letter from Bill Ford Jr. congratulating him on 30 years of service.

Does Bill's well wishes mean Stawasz and his colleagues will be getting their full retirement benefits? Not according to Ford, which says it didn't mean to insult but rather wanted to honor the defendants. Also included in the package from Ford were plastic rings to determine the right size for a celebratory ring and a catalogue from which to pick a gift. Full retirement benefits were not to be found in the catalogue among the gifts for which Stawasz was eligible.

[Source: Detroit News]

Ford sends not-so-funny joke to fired worker originally appeared on Autoblog on Mon, 12 Jun 2006 15:07:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments