A day after the Big Three failed to secure a $14 billion rescue loan from Congress, more unsettling news came from the struggling auto industry.
General Motors (GM) announced plans to slash production amid liquidity pressure amid uncertainty about a possible government rescue.
The auto maker said it would cut first quarter production by another 250,000 vehicles and idle 21 plants through January. The auto maker generally produces 750,000 vehicles per quarter, according to spokesman Tony Sapienza.Plants in the U.S., Canada and Mexico would be affected.
Honda is also slicing North American output for the fourth time this year, according to a report by The Wall Street Journal.
The Japanese auto maker is cutting back North American production by 119,000 units to 1.293 million units, the Journal said.
This potential move comes amid intense turbulence in the auto sector. Embattled American auto makers Ford, General Motors, and Chrysler were denied an emergency $14 billion loan late Thursday. General Motors has also hired bankruptcy law firms and experts, according to a separate report by the Journal.
Honda could not be immediately reached for comment.
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