NEW YORK -- Job cuts in the U.S. auto industry may exceed the record set in 2001 as General Motors and Ford Motor Co. announce more layoffs, a report said on Monday.
GM said on Monday it will cut 30,000 jobs. With those job cuts, combined with Ford's announcement on Friday to cut 4,000 jobs, the auto industry is on track to meet, or possibly surpass, the 2001 record of 133,686 job cuts in one year, said Challenger, Gray & Christmas Inc., an employment consulting firm.
"In June, GM said it would cut 25,000 jobs between now and 2008," said James Pedderson, a spokesman for the firm. "Now that they are giving more details, the number increased to 30,000."
Challenger will count 5,000 of the announced 30,000 GM layoffs for November. The other 25,000 were previously added to the June report.
The auto industry, which includes car manufacturers, suppliers, and auto dealers, announced 89,016 job cuts through October 2005. These cuts are 123 percent more than the 39,921 announced through October 2004, the report said.
Auto part suppliers and manufacturers that rely on the automakers will be the hardest hit, John Challenger, chief executive officer of Challenger, Gray & Christmas, said in a release.
"Additionally, every town with a closing plant will see its local economy take a hit. Retailers, restaurants, real estate, home improvement stores, etc., will all see business decline," Challenger said.
The Challenger report on November job cuts will be released on Dec. 7.