Top auto makers, Chrysler and General Motors have announced job cuts and other cost cutting initiatives for the companies who have been trying to compensate for the unsteady economy. As reported by the Associated Press, Chrysler LLC will cut 1,825 jobs in their factories and General Motors has plans to make voluntary as well as involuntary layoffs of several white collar employees.
The job cuts are in response to a decline in auto sales attributed to tightened consumer credit and other signifiers of the country’s economic woes. Analysts project that more job losses and cost cutting measures will be in the works for next year as well if the volume of sales for automobiles continues to decrease.
Members of the auto industry acknowledge that the economy has created a new generation of consumers who seek more efficiency in the cars they drive, and lagging sales are representative of the need for auto makers to cater to these needs. Others have also suggested that the current troubles have led to the nation’s slow depletion of American manufacturing workers.