Beverly Hills 1/12/2010 8:41:37 AM
News / Business

Automotive Companies Consider Rehiring

Financial World News Update by Equities Magazine

Car dealerships have been closing left and right since the start of the recession but at the Detroit auto show, carmakers were thinking positive. Last week, GM announced that it was considering hiring again in the near future, although at reduced pay, as demand exceeded current factory capability, and now others are sounding in with similar optimism.

 

Ford Motor Co. and Chrysler Group LLC announced that hiring plans are being discussed in the anticipation of increased recovery in the New Year. 126,000 people had their jobs cut in 2008 and 2009 as automotive sales plummeted to the lowest point in close to 50 years. The hiring plans will be modest and would be unable to atone for such dramatic set backs for some time.

 

Ford and GM are both in the process of building eco-friendly cars, which can be expected to generate new factory jobs.

 

Chrysler is without such groundbreaking incentives to begin hiring again but has plans to do so if demand rises to the expected numbers.

 

At present all the companies are contending with some former employees who continue to be compensated to a small extent as a result of union contracts.

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