Chrysler cuts 1,200 as auto crisis deepens
Move catches Ottawa off guard as auto makers are negotiating bailout package
Chrysler LLC is slashing 1,200 jobs at its Windsor, Ont., minivan plant, cutting about 15 per cent of its Canadian work force as it negotiates a bailout with Ottawa and Ontario.
Chrysler is eliminating a shift of production at the plant, yet another job-cutting announcement in Ontario’s beleaguered manufacturing sector that comes even as the company asks the two governments for about $2.5-billion.
The move represents the end of an era in the North American automotive industry because Windsor’s third shift was the last one still operating amid a massive production cutback caused by a collapse in industry sales. The third shift at the plant began in 1993, marking the longest-running three-shift operation in North America…
GM auditors raise doubts over viability
General Motors Corp.’s auditors have raised “substantial doubt” about the troubled automaker’s ability to continue operations, and the company said it may have to seek bankruptcy protection if it can’t execute a huge restructuring plan.
The auto maker revealed the concerns Thursday in an annual report filed with the U.S. Securities and Exchange Commission.
“The corporation’s recurring losses from operations, stockholders’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern,” auditors for the accounting firm Deloitte & Touche LLP wrote in the report.
GM has received $13.4-billion in federal loans as it tries to survive the worst auto sales climate in 27 years. It is seeking a total of $30-billion from the government. During the past three years it has piled up $82-billion in losses, including $30.9-billion in 2008.
In Canada, the company’s Canadian subsidiary has asked for billions of dollars in aid from the Ontario and federal governments…