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US carmakers seek help, Toyota hacks outlook

(Agencies)
Updated: 2008-11-07 15:31

The Ann Arbor, Michigan-based Center for Automotive Research, which is closely allied with the auto industry, released a study on Wednesday estimating that the failure of one or more of the three Detroit-based automakers would result in up to 2.5 million lost jobs.

People are reflected on a share chart in Tokyo on November 6. Toyota Motor has slashed its profit forecast, warning the global auto industry faces an "unprecedented" crisis as Asian stocks tumbled on fears the US is sinking deeper towards recession. [Agencies]

Michigan Gov. Jennifer Granholm, considered a possible nominee to a cabinet position in the Obama administration, sent a letter to Pelosi and Democratic Sen. Harry Reid, urging help for the auto industry as part of an economic stimulus package.

"Assistance must be provided to this critical industry to avoid unthinkable layoffs that could devastate the middle class in Michigan and other auto-heavy states," Granholm said.

GM North America President Troy Clarke framed the hard road ahead, calling the next 100 days critical for GM and the industry in a speech to auto parts makers Wednesday night.

Clarke, who said the industry needs to step up its efforts to secure US government support in consultation with the incoming administration, also said GM was being driven to cut costs further.

Former Michigan governor John Engler, who heads the National Association of Manufacturers, said on Wednesday the auto industry might not be able to wait until Obama takes office in January before clinching new aid.

Losses Widespread

Also on Thursday, AutoNation Inc, the largest US auto dealership group, posted a $1.41 billion net loss and Chief Executive Mike Jackson said the US industry was in urgent need of federal aid despite signs that US auto sales had hit bottom in October.

Dana Holding Corp posted a third-quarter net loss than nearly quadrupled from a year earlier and said it would close up to 10 plants and cut 2,000 jobs.

Honda Motor Co Chief Executive Takeo Fukui, meanwhile, complained about wild fluctuations in the yen, saying authorities should step in to prevent a sudden rise in the currency, a major culprit for Japanese car makers' revisions.

Toyota lowered its 2008/09 global sales forecast to 8.24 million vehicles from 8.74 million, expecting weaker demand in most regions and a senior executive said it was hard to tell when things would begin to improve, pointing to hopes that the US market would start to recover around the end of 2009.

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