Wednesday, November 4, 2009

Gloomy Forecast from Parts Maker

 The U.S. economy is set for a double-dip recession that will keep unemployment high and could pressure auto sales into the middle of the next decade, the head of Dura Automotive Systems told Reuters on Tuesday.

"We're planning on a double-dip for a couple reasons," said Tim Leuliette, chief executive of the privately held auto parts maker.

Current forecasts for moderate economic recovery do not give employers across many sectors of the economy any reason to start adding jobs, Leuliette told the Reuters Autos Summit in Detroit.

"A 2 to 3 percent-type of growth for our business is really a zero employment growth environment," Leuliette said. "We see further headcount declines, employment declines. And so at some point even those that are forecasting some growth, I think, we are going to see start to dissipate."

The full text of the story is on Reuters.com at:

http://www.reuters.com/article/Autos09/idUSTRE5A23SD20091103

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