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Depression looming over world

With reports that GM might go bankrupt, study by Center for Automotive Research predicts that the failure of GM in an event where the company stops production would cost 2.5 million jobs in the U.S. in the first year.

Some lobbyist are working for bailout package for auto industries like banking/finance sector but unlike Banks, these are Manufacturing industries and will have to produce and sell. If know one is willing to or able to buy their product how can they survive? GM can’t even file for Chapter 11 Reorganization. First, the cost of running GM is 11 billion $ per month. Second, selling some of it’s portfolio to rival is not possible because in these credit crunch no auto firm will have guts to buy out GM (may be in parts). Filing Chapter 7 Liquidation seems the only option…

Newspapers, magazines, broadcast television and radio are already feeling heat of the downturn in auto industry. In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence. Newspapers were the hardest hit, losing $131 million in auto advertising.
Time Inc., the nation’s largest magazine publisher, said will be eliminating about 600 jobs worldwide, most of them at its 24 magazines in the United States.

Here is a sampling of the bad news for newspapers and newsweeklies that has recently been announced by publishers, including layoffs, drops in print advertising revenue and changes in frequency:

-The Christian Science Monitor, which currently publishes on weekdays, plans to scale back its print publication to once a week in 2009. It will continue to publish up-to-the-minute reports online at CSMonitor.com.

-U.S. News & World Report reportedly will become a monthly publication and abandon its direct competition with newsweeklies Time and Newsweek. The magazine had previously issued a statement that it would become a biweekly.

- Time Inc., publisher of Time and Fortune, reportedly plans to slash 600 jobs.

- McGraw-Hill Cos. cut 270 positions in the third quarter on top of previous job cuts totalling almost 1,000 since 2007. The company said that $13.9 million of its $23.4 million restructuring for the quarter stemmed from its information and media group, which includes BusinessWeek.

- Condé Nast Portfolio plans to reduce its frequency to 10 times per year and cut jobs.

- Gannett Co., publisher of USA Today, reportedly plans 3,000 job cuts.

- Tribune Co.'s Los Angeles Times plans to cut 10% of its work force.

- The New York Times Co. announced that its third-quarter print advertising revenue declined 14.4% compared with the same period last year.

- The Seattle Times Co. said it planned to cut as many as 150 jobs, many of them in its newsroom.

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