Punch International NVSint-Martens-Latem, Belgium

Parts Makers Cut Costs - Several US auto parts makers have announced cost-cutting measures to counter the effects of the ongoing automotive downturn in the US. Tighter credit, falling consumer confidence, and a shift away from trucks and SUVs have hurt parts makers' customers. Major parts makers including Lear, ArvinMeritor, and Tenneco are using various combinations of job reductions, plant closures, and other measures to lower costs and bring production capacity in line with reduced demand.

Detroit Pins Hopes on Obama Presidency - Carmakers and their suppliers hope that president-elect Barack Obama will deliver on campaign promises he made to help the US' ailing auto industry. On the campaign trail Obama said that he supports doubling the $25 billion low-interest loan Washington approved for Ford, GM, and Chrysler for the development of more efficient cars. He has also said that he wants the US to build 1 million plug-in hybrids by 2015. The Bush Administration recently rejected GM's bid for $10 billion to fund its proposed merger with Chrysler; GM hopes an Obama presidency might reconsider the proposal.

Research Firm Estimates Failure Impact - The Center for Automotive Research (CAR) released detailed estimates on the potential impact a full, or partial, collapse of the US auto manufacturing industry would have. CAR claims that a complete closure of all US operations by Ford, GM, and Chrysler would result in 3 million job losses. Costs of the total failure of the Big Three carmakers to the US government are estimated to be $60 billion the first year, and more than $156 billion over three years.