Automakers Fret as White House Stalls on Bailout
from AFP
 Faced with the looming threat of bankruptcy, U.S. automakers fretted on Monday while White House officials studied the sputtering companies' finances but reported no moves toward a bailout. President George W. Bush, who has hinted the government could tap a massive federal rescue package to aid the automakers, said on the way from Iraq to Afghanistan that an agreement on how to remedy the carmakers' plight was not imminent. "We're now in the process of working through with the stakeholders a way forward, and we're not quite ready to announce that yet," he told reporters aboard Air Force One. But he added that "this will not be a long process because of the economic -- the fragility of the autos." More
GM to Idle 30 Percent of Volume, Cut Production
from CNN
General Motors Corp. will idle about 30 percent of its North American assembly plant volume and cut production by about 250,000 vehicles in the first quarter because of the recent steep drop in sales. The move affects 14 U.S. plants, three in Canada and three in Mexico. GM also said it will continue to assess its powertrain and stamping capacity needs and make appropriate changes. Earlier this month, GM projected it would make 600,000 vehicles in North America during the first quarter. That compares with 885,000 a year earlier, when production of about 100,000 vehicles were lost from a strike at American Axle & Manufacturing Holdings Inc. More
Governor: Wind Energy Key to Ohio’s Survival
from The Cleveland Plain Dealer
Ohio's battered economy feels the winds of opportunity. Gov. Ted Strickland told a crowd of 800 at the InterContinental Hotel in Cleveland that the wind industry "has a bright future" in Ohio because of its manufacturing capacity and the growing need for renewable power. "Energy jobs will lead the way to invigorating Ohio's economy," Strickland told conference attendees, most of them manufacturers eager to supply some of the 8,000 parts that go into a wind turbine. The American Wind Energy Association hosted the two-day conference. AWEA came here partly because of Ohio's growing stature in the wind industry supply chain. About 90 companies, most from Northeast Ohio, are cranking out parts for turbine manufacturers, from massive gears to 5-pound bolts. More
UAW: Bailout Collapse Means Suppliers May Cut Off Automakers
from The Detroit News
The collapse of emergency aid to Detroit's struggling Big Three automakers could prompt suppliers to cut off deliveries and start demanding cash payments up front from the strapped carmakers, according to the president of the United Auto Workers. Ron Gettelfinger said he talked to General Motors Corp. CEO Rick Wagoner and Chrysler LLC President Tom Lasorda this morning, and that their biggest concern is whether suppliers will stop delivering parts or require payment upon delivery or in advance if they think federal aid is not coming. "We need to satisfy the suppliers that there is going to be a tomorrow," Gettelfinger said. "If suppliers believe they can't operate, what are they going to do? They aren't going to deliver the goods." More
GOP Senator Says He Won't Block Auto Deal
from CBS News
Senator Bob Corker (R-Tenn.) said on CBS’ Face The Nation Sunday morning that he will not try to block the White House should they push for the proposed automaker bailout plan. "This has never been about blocking,” he assured host Bob Schieffer. Corker noted that this is now in the hands of the White House and that after speaking with administration officials and Secretary Paulson, he doesn’t think they know what they are going to do. More
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Forest City Gear Announces Capital Equipment Investment
from Quality Magazine
Forest City Gear announced it has invested more than $6 million in the purchase of new capital equipment for the manufacture of gears during the last 18 months. According to CEO Fred Young, this reinvestment of revenue was made for a variety of reasons, primarily to expand the company’s manufacturing capabilities and to maintain Forest City Gear’s reputation for staying on the leading edge of manufacturing technology. “Our customers expect Forest City Gear always to lead the way in devising new production techniques to make better gears for them, at competitive cost and with superior service. That’s a tall order, but it’s one we welcome. Our track record speaks for itself in this area, as Forest City Gear has reinvested an average between 25% and 40% of our annual revenue for the last 30 years in the purchase of gearmaking machinery and ancillary equipment. In addition, we’ve made some major investments in green technology, over the last two years,” Young notes. More
No Relief Seen on the Horizon for Industry
from Minneapolis St. Paul Star-Tribune
The sudden global economic slowdown is trimming sales, earnings, jobs and plants across the U.S. manufacturing landscape -- and economists say more cuts are on the way next year. DuPont, Dow Chemical, Ford Motor Co., General Motors Corp. and Anheuser Busch, among others, are shutting factories and slashing jobs around the globe; those firms whacked 26,000 jobs and announced 30 plant closings last week. Nationally, manufacturers have scrubbed 600,000 jobs this year -- including 85,000 last month. More
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