Tough Time for Automakers

Both Ford and General Motors reported steep third-quarter losses on Nov. 7, although Ford's losses were offset by a shift in retirement benefits. Both automakers burned through at least $6.9 billion from July to September, leading General Motors to warn that without aid, it could run out of cash next year.

David Zalubowski, AP

On left, Ford CEO Alan Mulally, GM CEO Richard Wagoner, Chrysler CEO Bob Nardelli, and UAW President Ron Gettelfinger meet with Speaker of the House Nancy Pelosi, D-Calif., second from right, and House Majority Leader Steny Hoyer, D-Md., right, before a meeting Thursday in Washington.

Susan Walsh, AP

Amid reports that the automaker's salaried workers face a new round of job cuts, General Motors Corp. on Oct. 23 said it will suspend a number of benefit programs starting next month, including matching 401(k) contributions, tuition reimbursement and adoption assistance programs.

Al Goldis, AP

Chrysler on Oct. 23 announced plans to eliminate a shift at a plant in Toledo, Ohio, and shut down a Newark, Del., factory by the end of the year. The Toledo factory makes the Dodge Nitro and Jeep Liberty, and the Newark plant manufactures the Dodge Durango and Chrysler Aspen SUVs. The company is also offering white-collar workers up to $75,000 cash and vehicle vouchers to quit as it looks to cut 5,000 jobs.

Madalyn Ruggiero, AP

General Motors on Oct. 13 announced plans to idle two Midwest factories by the end of the year. A plant in Janesville, Wis., shown, will cease production of the GMC Yukon and the Chevrolet Tahoe and Suburban SUVs, and a metal stamping plant in suburban Wyoming, Mich., will also be stilled.

Andy Manis, AP

Shares of General Motors Corp. fell by nearly a third Oct. 9, dragged by a warning from the Standard & Poor's Ratings Services that its credit rating may be downgraded. The drubbing helped pull the Dow Jones Industrial Average to its lowest level in more than five years.

Scott Olson, Getty Images

The credit crisis is a one-two punch for car dealerships, who depend on lending to put vehicles in the showroom, and whose customers depend on financing for purchases.

Justin Sullivan, Getty Images

Citing tighter lending credit and falling demand for trucks and SUVs, Ford Motor Co. reports its worst month yet in a tough year for automakers. The company's U.S. sales fell nearly 35 percent last month compared to September 2007.

David Zalubowski, AP

Bill Heard Enterprises, the biggest Chevrolet dealer in the country, said Sept. 24 that it is closing its 13 remaining dealerships, unable to survive in a weak economy with high gas prices and an inventory heavy on trucks and SUVs.

David Zalubowski, AP

General Motors' treasurer said Sept. 24 that the automaker is planning to put its Strasbourg, France, manufacturing operation and its Hummer truck brand up for sale, and it may announce more asset sales later this year.

General Motors