Auto Industry | featured news

General Motors Corp is expected to slash up to 1,200 dealers as it struggles to dramatically pare down its operations and eliminate billions of dollars of costs ahead of an anticipated bankruptcy filing by the end of this month.

New jobless claims rose more than expected last week due partly to an increase in layoffs by the automobile industry, while the number of people continuing to receive unemployment benefits set a record for the 15th straight week.

The carmaker, which filed for bankruptcy protection two weeks ago, sent letters to 789 of its 3,200 American dealers revoking their franchises.

Japan's Suzuki Motors avoids a loss in the final quarter, helped by growth in India, but is downbeat on its prospects.

Communities, reeling from the collapse of car companies, seek new ways to prosper, rebuild.

The automaker blames a prolonged slump in global demand and a strong Japanese yen, and says this year will be even worse.

When automaker completes restructuring plan, many new jobs will be filled by workers overseas.

General Motors' financial woes continue as the automaker teetering on the edge of bankruptcy reported a $6 billion loss during the first three months of the year Thursday.

GM is in talks about turning its Saturn division over to Renault. Separately, China's Geely Automobile has submitted a bid to acquire GM's Saab unit.

Things were already tough in Kokomo, Indiana.