auto sales at decade lows, have been forced to launch more aggressive cost-cutting actions over the past weeks in the wake of the escalating credit crisis. The supplier has also increased the number of cuts in North America by 200 to 1,200 positions, or 16 percent of its workforce.Īuto parts suppliers, already pressured by U.S. In response to the abrupt downturn in global demand, BorgWarner said it will reduce 500 jobs in Europe, or 6 percent of its workforce in the region. The economic issues of the US have spread to other regions around the world,” Manganello said. financial sector has basically frozen liquidity and our U.S. “Much has changed in the past three months. “The crisis in the financial sector and deteriorating global economic conditions has caused significant turmoil and uncertainty,” BorgWarner Chief Executive Tim Manganello said on a conference call with analysts. The suppliers all expected market conditions to deteriorate further in 2009, saying the credit crisis and a worsening global economy are dampening already-weak appetite for vehicles. Tenneco shares were up 7 percent after earlier falling as much as 11 percent. Shares of BorgWarner tumbled as much as 14 percent after the supplier lowered its full-year financial outlook in the wake of the results that missed Wall Street estimates. The weak conditions caused BorgWarner Inc BWA.N to post a quarterly loss and Tenneco Inc TEN.N to announce future job cuts and plant closings, sending shares of the companies lower.īrussels, Belgium-based supplier Wabco Holdings Inc WBC.N also posted quarterly earnings below Wall Street forecasts and said it would cut about 1,000 jobs, sending its shares to a lifetime low. auto parts makers and a European supplier said on Wednesday that the global credit crisis and economic slowdown hammered their business in the just-completed quarter and would lead to more job cuts and plant closings.
DETROIT (Reuters) - Two of the largest U.S.
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