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Dow closes below 8,000

Wall Street hit levels not seen since 2003 as the fate of Detroit’s Big Three automakers and the economy disheartened investors.

By SARA LEPRO
The Associated Press

NEW YORK — Wall Street hit levels not seen since 2003, with the Dow Jones industrial average falling below the 8,000 mark, as the fate of Detroit’s Big Three automakers and the economy disheartened investors.

Read the story here

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Two questions readers:

1) What are you doing to console yourself about retirement fund losses (if you are affected)?

2) On another economic note, do you think Washington DC should be helping out the auto-makers?

Here is the latest update from our Economic development department. We will deeply regret the loss of jobs, and the loss of prestige that comes from manufacturing the best 18-Wheelers on the highway. Let’s hope Kenworth maintains the option of restarting in Renton when the economy improves.

My sincere sypathy to you readers that are directly affected by these layoffs. The economy is really going in the tank right now. Those of us in government will do all we can to improve it.

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>>> Alexander Pietsch 11/14/2008 11:23 AM >>>

yes. Thanks. We’ve been in touch with Kenworth. The company is characterizing it as a temporary reduction in the production of on-highway trucks. They still will make other off-highway trucks. This is a big cut though. They last reported 1,067 FTE in Renton.

Alex Pietsch
Administrator
Dept. of Community & Economic Development
City of Renton

>>> Julia Medzegian 11/14/2008 11:20 AM >>>

Ack! Im assuming Jay, Marty, Alex, etc. know, but just in case . . . . http://seattlepi.nwsource.com/business/387874_kenworthcuts15.html

Kenworth to lay off 421 workersBy

BILL VIRGIN
P-I REPORTER
Kenworth Truck Co. plans to lay off more than 400 workers and end most truck production at its Renton plant as a two-year slump in truck sales moves into a third.Don Hursey, directing business representative for Machinists District Lodge 160, said he was told by officials of Paccar Inc., Kenworth’s parent, that 329 union and 92 management employees will be laid off. The plant will continue to produce two of the large off-road trucks used in such industries as mining. But production of conventional highway trucks will be shifted to Kenworth’s Chillicothe, Ohio, plant.The layoffs and production cuts are effective Jan. 19.A Kenworth spokesman confirmed that the Renton plant is curtailing production and laying off workers, but did not give numbers.Kenworth said the cuts are due to a slowing economy and truck market. Heavy-duty truck sales were 322,000 in the U.S. and Canada in 2006, but fell to 176,000 in 2007 and are expected to be about 2008 this year.

Rich Zwicker