Although auto industry economists still expect a slowdown later this year, the reduction in inventories that has already occurred provides some relief for auto workers, who may face fewer short-term layoffs. George Pipas, a market analyst at Ford, says the auto industry already has its biggest production cuts behind it unless sales deteriorate more than expected. With 4.7 million Americans working for automakers and their suppliers, and most earning high wages, fewer weeklong shutdowns of factories could mean more public confidence and more spending. The automotive industry employs about 22,000 workers in Wisconsin, a number that has remained relatively steady in recent years. Since 1988, average yearly employment in the industry has been as high as 23,600 in 1995 and as low as 17,300 during the last recession, in 1991, according to data from the Wisconsin Department of Workforce Development.
Spring is the biggest selling season, when no automaker likes to lose market share.
With more factories churning out cars, and little likelihood that sales will equal last year's torrid pace, automakers are preparing to offer rebates and other incentives in the months ahead. Joel Dresang of the Journal Sentinel staff contributed to this report. Ind. Most of the cuts will be through retirements. All rights reserved. Produced by Journal Interactive .