Tumbling global economy has had its effect on almost every sector. Auto industry, which had thrived amazingly in the past couple of years, is now finding it difficult to walk at its usual pace. Weak global cues have left auto manufacturers around the globe lurking. It has now emerged that the largest car manufacturer in the world (2011), General Motors is going to stop the functioning of one of their lines at their plant in Oshawa, Ontario. This move will cost 2,000 people with their jobs. No official announcement has been made as of now, but expect one by next week.
Japanese car maker, Mazda too is going to downsize in Europe and US by a good 25%. Automotive News Europe has reported that Mazda will be cutting a total of 250 jobs in Europe and US. The reason, decline in sales and value of yen getting stronger.
South Korean car maker, Hyundai has had an exceptional run around the globe. They have managed to defy current scenario riding on rising sales in US and Europe. Earlier last month, Hyundai had announced that they will be adding a third shift at their plant in Alabama, US. For this, they would be hiring 877 new people. Considering the current job scenario, Hyundai has received a total of 20,000 applications!
Earlier yesterday, almost every other index of different countries in the world were down in the red. Germany, which is home to car brands like Mercedes Benz, BMW, Audi and Volkswagen, was down by a good 3.42% while France, home to Peugeot and Renault, was down by 2.21%. Ford and GM’s home, America too was not spared yesterday as Dow Jones was down by 2.22%, S&P by 2.46% and NASDAQ by 2.82%.