U.S. Auto Makers Slammed By Sales Declines In Western Europe

DETROIT --U.S. auto makers, already grappling with troubles at home, must now deal with a slowing European vehicle market that's forcing job cuts and creating more uncertainty for the struggling companies.

Ford Motor Co. (F) and General Motors Corp. (GM) increasingly depend on sales abroad to offset double-digit sales declines in the all-important North American market. But while sales continue to rise in many critical emerging markets, such as Russia, China and Brazil, mounting troubles in more mature markets are beginning to take a toll. The same factors dragging on the U.S. economy - soaring fuel prices, a weak housing market and skittish consumers - are being felt in Western Europe.

Ford said Tuesday that slackening demand in local and export markets is prompting the company to temporarily lay off between 1,000 and 1,200 people at a factory in Valencia, in eastern Spain.

Meantime, Spanish state-owned newswire EFE reported Tuesday that GM plans to cut 600 jobs at its factory in Figueruelas, in the province of Zaragoza. Officials from GM weren't immediately available to comment.

News from the U.S. companies came as French auto maker Renault SA (13190.FR) laid out a plan to cut 6,000 European jobs in response to the slowdown.

"They already have their hands full with everything going on in their home market, this is just another headache on their plate," said Rebecca Lindland, automotive analyst at Global Insight Inc. "Nobody knows how long these issues are going to be unsettled."