Sunday, November 09, 2008
Kentucky Governor Recalls For Renew Help For Auto Industry.
FRANKFORT, Ky. – In the wake of both Ford and General Motors announcing new earnings numbers with billions in losses, Gov. Steve Beshear today renewed his call for the President and Congress to move quickly on a stimulus package that includes the automotive industry.
“Today's earnings and sales reports paint a sober picture of an auto industry in distress as it struggles desperately to overcome the impact of a credit crisis and dramatic drop in consumer confidence,” Gov. Beshear said.
Ford Motor Co announced further cuts this morning as it reported losing $129 million in the third quarter.
The automaker, which has two manufacturing facilities in Louisville, will shave 10 percent more white-collar employees from its payroll, reduce its product-development and engineering budget, and continue to implement production cuts to pare inventories in line with the worst auto sales market in decades.
At the same time, General Motors Corp, which has a manufacturing facility in Bowling Green, reported a net loss of $2.5 billion, an adjusted loss of $4.2 billion and burned through $6.9 billion in cash in the three-month period ended Sept. 30.
“These third quarter results make it increasingly clear that under these extraordinary conditions, the industry cannot continue its progress alone,” Gov. Beshear said. “Our nation's competitive strength and the economic health of families, communities, and states throughout our country are at stake, which requires us to act now to support our nation's automakers.”
Gov. Beshear recently signed a letter with governors from other auto-manufacturing states, urging Congress to help the industry by continuing to make moves to free up more capital to prop up credit markets, which have been frozen in the wake of the financial crisis.
In addition to freeing up credit markets, though, Gov. Beshear said the automotive industry needs to direct financial help to preserve those industries and their jobs.
Kentucky has 461 motor vehicle-related facilities, employing some 85,000 people. The Commonwealth is now the third largest producer of automobiles in America, behind only Michigan and Ohio. Kentucky now produces more cars than any state in the South.
“The automotive industry is critical to Kentucky. It’s critical to America,” Beshear said. “Time is not our friend, though, when it comes to preserving these jobs and vital industries. I urge the Congress to move as quickly as possible to preserve these jobs and critically important businesses.”
“Today's earnings and sales reports paint a sober picture of an auto industry in distress as it struggles desperately to overcome the impact of a credit crisis and dramatic drop in consumer confidence,” Gov. Beshear said.
Ford Motor Co announced further cuts this morning as it reported losing $129 million in the third quarter.
The automaker, which has two manufacturing facilities in Louisville, will shave 10 percent more white-collar employees from its payroll, reduce its product-development and engineering budget, and continue to implement production cuts to pare inventories in line with the worst auto sales market in decades.
At the same time, General Motors Corp, which has a manufacturing facility in Bowling Green, reported a net loss of $2.5 billion, an adjusted loss of $4.2 billion and burned through $6.9 billion in cash in the three-month period ended Sept. 30.
“These third quarter results make it increasingly clear that under these extraordinary conditions, the industry cannot continue its progress alone,” Gov. Beshear said. “Our nation's competitive strength and the economic health of families, communities, and states throughout our country are at stake, which requires us to act now to support our nation's automakers.”
Gov. Beshear recently signed a letter with governors from other auto-manufacturing states, urging Congress to help the industry by continuing to make moves to free up more capital to prop up credit markets, which have been frozen in the wake of the financial crisis.
In addition to freeing up credit markets, though, Gov. Beshear said the automotive industry needs to direct financial help to preserve those industries and their jobs.
Kentucky has 461 motor vehicle-related facilities, employing some 85,000 people. The Commonwealth is now the third largest producer of automobiles in America, behind only Michigan and Ohio. Kentucky now produces more cars than any state in the South.
“The automotive industry is critical to Kentucky. It’s critical to America,” Beshear said. “Time is not our friend, though, when it comes to preserving these jobs and vital industries. I urge the Congress to move as quickly as possible to preserve these jobs and critically important businesses.”
# posted by Joe Kinzer @ 7:03 AM 
