2 years ago
(NBC) -- There were more staggering numbers from Detroit Friday. Ford and General Motors announcing worse than expected losses in the third quarter. Both companies say they will take aggressive steps to cut costs even further but say they may need help to survive.
Those aggressive steps will include job cuts. At least 3,600 at GM, another 2,000 at Ford. But there is a growing concern that will not be enough. The check engine light has been on for the auto industry for quite some time. But a look under the hood today shows problems may be much worse than expected. Ford announced a third quarter loss of 129-million-dollars. General Motors, 2-point-5 billion. Both automakers are burning through more than 2-billion dollars a month. Raising serious questions about how long they can continue driving along the edge of bankruptcy. "That would have a devastating impact. Not only GM Continue try and build liquidity through unprecedented crisis," said General Motors CEO Rick Wagoner. The sputtering economy is clogging the engine that runs this industry. Auto sales are at a 25-year low and still falling. "We've got to get cash into these companies. It's really vital," said auto industry analyst Rebecca Lindland. The CEOs of Ford, Chrysler, and GM hope Washington will help to foot the bill. The executives were on Capitol Hill Thursday asking for 25-billion-dollars to help re-tool plants and build fuel efficient vehicles. Plus, an additional 25-billion to help fund an employee health care trust. "I think it's critical that we move fast," said Wagoner. An industry built, in large part, on speed now in a critical race to survive.
