"Toyota chief fears GM, Ford demise"

[Thai]

Toyota chief fears GM, Ford demise
CEO says U.S. policy may turn against Japanese automakers if American carmakers collapse.
June 8, 2005; Posted: 7:05 a.m. EDT (1105 GMT)

OSAKA, Japan (Reuters) - The outspoken chairman of Toyota Motor Corp. said on Wednesday he feared the possibility that U.S. policy could turn against Japanese auto makers if local giants such as GM and Ford were to collapse.

"Many people say the car industry wouldn't revisit the kind of trade friction we saw in the past because Japanese auto makers are increasing local production in the United States, but I don't think it's that simple," Hiroshi Okuda told a news conference.

"General Motors Corp. (Research) and Ford Motor Co. (Research) are symbols of U.S. industry, and if they were to crumble it could fan nationalistic sentiment. I always have a fear that that in turn could manifest itself in policy decisions," he said, speaking as the head of the nation's biggest business lobby, the Japan Business Federation.

Okuda, who as chairman is removed from the automaker's day-to-day operations, raised eyebrows and invited criticism on both sides of the Pacific when he said two months ago that Toyota should think about ways in which it could aid U.S. auto makers -- such as by raising product prices -- as they reel under massive health-care costs and sliding sales.

In the latest sign of tough times at Detroit's Big Two, GM Chief Executive Rick Wagoner told shareholders Tuesday of plans to cut at least 25,000 manufacturing jobs and close more U.S. assembly and component plants over the next few years.

Both GM and Ford have been cutting back output as they lose sales to Asian brands led by Toyota, which now controls 13.4 percent of the U.S. car market, the world's biggest.

Asked what he thought of GM's latest restructuring plan, Okuda said: "If you think about GM's current output volume and vehicle lineup, laying off 25,000 to 30,000 employees is inevitable."

GM, the world's biggest auto maker followed by Toyota, lost $1.1 billion in the first quarter and is riding out its worst financial crisis in more than a decade. It has been closing and idling plants over the past four years and will have cut its annual North American assembly capacity to 5 million vehicles by the end of this year from 6 million in 2002.

Meanwhile, top Japanese auto makers are adding jobs and assembly lines in North America to meet growing demand there, prompting executives, including Toyota President Fujio Cho, to dismiss concerns that their success would reignite a political backlash.

 

[Thai]

Article published Jun 8, 2005
GM's future in Shreveport may depend on new vehicle

The Associated Press

General Motors Corp.'s future in Shreveport could depend upon how well - and for how long - consumers respond to its new Hummer H3, a union official says.

The automaker announced plans Tuesday to close plants and cut 25,000 jobs as it shrinks its North American operations, the largest and most troubled part of its business.

In Shreveport, GM employs 3,000 hourly employees. In mid-May, its latest product, the H3 was released to the market.

"I think we're a key plant in the GM Corporation because we have a hot vehicle right now, and they have great expectations for the H3, and we just started building it," said David Kitterlin, president of UAW Local 2166. "A year from now, will that be the case? I don't know. It depends on whether the sales for the H3 will hold up. Nobody knows that."

GM has been hurt in recent years by lackluster sales of its highly profitable trucks and sport utility vehicles and market share loss to Asian rivals. GM hopes to sell 20,000 to 30,000 H3s by the end of the year.

Larry Vansell, a stock handler at the Shreveport plant, said he is accustomed to moving when plants close. Shreveport is his fourth stop as a GM employee.

"I've been through this so many times, it doesn't bother me anymore," said Vansell, 56. "I've been working here since 1969 and it's the best part-time job I've ever had. I'm still trying to get my 30 years in."

Loyd Haggermaker, who transferred to Shreveport 15 months ago after a GM plant shutdown in Athens, Ala., said he has faith in the H3s potential. He works on the final assembly line for the vehicle.

"We're building the Hummer now. And it's supposed to be the thing of the century," Haggermaker said. "We've got a lot of temporary employees right now. And workers are afraid when they're gone there will be a layoff, but I don't see a layoff in the future, not here."

GM's job cuts would be on top of earlier reductions that pared GM's domestic work force from 177,000 hourly and salaried employees at the end of 2000 to 150,000 at the end of last year. The company also wants relief from its $5 billion annual health bill - which the company says adds $1,500 to the price of each vehicle - for 1.1 million workers and their families.