WSJ Online / Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved / By Sharon Terlep
In a surprising show of optimism at the Detroit auto show, each of the three Detroit-based car makers said Monday it may soon begin hiring U.S. factory workers.
General Motors Co., Ford Motor Co. and Chrysler Group LLC are considering hiring plans in expectation that U.S. vehicle demand will begin to recover from last year's anemic levels.
Such moves would help reverse a dramatic decline in U.S. auto manufacturing jobs that accelerated last year as vehicle sales sank to a 47-year low. The hiring plans, however, wouldn't make a dent in the job loss of last year, when the industry cut 126,000 U.S. factory positions.
GM North American chief Mark Reuss told reporters Monday the company hopes to bring in new workers at a reduced wage and may even reopen a Tennessee factory closed last year as part of the company's government-backed revamping.
Ford said a $450 million investment to build its next-generation hybrid models and its first plug-in electric cars in Michigan should yield 1,000 jobs in the beleaguered state.
Meantime, Chrysler Chief Executive Sergio Marchionne said his company will begin hiring workers this year if demand recovers as expected. "We do need to re-establish a base of talent that I think has been lost as a result of restructuring," he said.
The companies also must deal with workers who have been laid off but are still receiving some of their pay under union agreements. GM has about 6,700 laid-off workers; Ford and Chrysler haven't released their figures.
Meantime, Toyota Motor Co. said it is looking to increase production in anticipation the U.S. market will grow at least 10% from last year's 10.4 million sales level. The Japanese company, which produced about 63% of its products in North America last year, is considering raising local production but has yet to make any firm determinations, it said.
Even the industry's smaller players may have to stretch to meet improving demand. A senior Subaru executive said Monday a factory in Lafayette, Ind., that builds the Subaru Outback, Legacy, and Tribeca is at maximum output. "We're using all the capacity we have," said Timothy Colbeck, sales chief for Subaru of America Inc., a unit of Fuji Heavy Industries.
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Wed, Jan 13, 2010 6:41 AM
Jan 13, 2010 6:41 AM
http://online.wsj.com/article/SB10001424052748704081704574652830152961434.html
Jan 13, 2010 6:41am