North America’s largest auto supplier, Magna International Inc., reported a fourth-quarter loss of $148 million, citing the drop in demand for new cars as the reason. Magna said that it ended 2008 with sales of $23.7 billion, a 9 percent drop when compared to the same period last year.
Co-executive chairman Don Walker said that Magna has about $1.9 billion in cash and has access to about $1 billion in credit. He said that the company is in a good position to get through 2009 although he believes this year will be worse than the last.
Earlier this month, Magna announced that it will close its gear assembly plant in Syracuse, New York after workers rejected a contract that was necessary to keep the factory open. As a result of the closure, Magna will eliminate 1,400 jobs.
Source: Detroit News