Publication: Manufacturing & Technology News
Date: Sunday, March 11 2007

The U.S. automotive industry has announced the layoff of almost 90,000 workers so far this year, and this year’s total could top the 110,000 announced layoffs made last year, according to Challenger Gray & Christmas. “Suppliers may be the next source for major workforce reductions as they adjust to the new reality of smaller American automakers,” says the outplacement firm. “Plant closings by Ford and General Motors will also ripple through the economy possibly resulting in job cuts throughout a variety of industries as communities struggle with higher unemployment.”

Last year at this time about 83,000 layoffs had been announced in the automotive sector. This year’s job cut announcements of 87,000 already exceeds the total number of layoff announcements made in 2004 (77,174) and 2003 (74,506). The highest number of layoff announcements made over the past 10 years in the auto sector occurred in 2001 at 133,686.