The global downturn in demand for automobiles continues to wreak havoc on auto parts makers and commodities suppliers, as indicated in this roundup of automotive financial news:
Parts maker Magna posts Q4 loss
One of the largest auto parts makers, Canadian-based Magna International, Inc. (NYSE:MGA) reported a hefty US$148 million loss for the fourth quarter. The company reported a net profit for all of 2008 of US$71 million, down nine percent over 2007. Magna’s management said, “While 2008 was a difficult year for the industry, 2009 is expected to be even worse.” Magna employs approximately 74,000 workers. (Source: Toronto Sun)
Auto parts maker Federal-Mogul posts steep loss
Federal-Mogul Corp.(NASDAQ:FDML) posted a loss of $529 million, making Magna’s loss look tame by comparison. Federal-Mogul is in the process of scaling back its total employment of 50,000 workers by eight percent. (Source: Reuters)
UK-Lonmin to slash 5,500 jobs in South Africa
Global recession along with steep drop in demand for platinum for catalytic converters forced British mining group Lonmin to cut 5,500 jobs in South Africa as part of a move to restructure. (Source: MENAFN.com)
Work ceases at Modern Metal
Beleaguered Modern Metal ceased production of vehicle seats and assemblies Monday at its Loves Park, Ill. plant. The bankrupt company is in the final stages of negotiations to sell its equipment to competitor Gill Industries located in Grand Rapids, Mich. Modern Metal’s customers included Magna International, Johnson Controls, and Lear Corp.; it employed 245 workers. (Source: Rockford Register Star)
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