Auto Industry Hits Hard Times

Multiple auto companies are hitting hard times and attempting to turn around business by reinvesting in technology and producing alternative fuel cars.

Ford Motor Co. has announced it lost $1.2 billion in the first quarter of 2006. This is the auto makers worst performance in more than four years. Ford is in the process of a major North American restructuring.

Nissan plans to halt production for six days at three facilities in the U.S., which equates to approximately 18,000 vehicles from their planned production schedule. The auto maker also plans to add four days to its regular summer shutdown period in July. Workers will still be paid for the days production is cut, according to a Nissan spokesperson.

General Motors Corp. has reported a first-quarter loss of $323 million, or 57 cents per share. This is the sixth straight quarterly loss of GM. It was, however, an improvement over first quarter results from 2005.

Toyota Motor Corp. plans to sell ethanol-powered vehicles in the U.S. by 2008. Although Toyota has been a leader of electric hybrid vehicles, the auto maker has resisted ethanol vehicles over concerns about the impact of the fuel's highly corrosive effect on rubber seals. Toyota also plans to spend about 1.4 trillion yen (approximately $12 billion) on plants and equipment in the next year.