Chrysler, Ford extend holiday shutdowns to save cash

— -- As automakers await a White House decision on federal loans, they took more steps Wednesday to save their dwindling cash and cut production to keep pace slower sales.

Workers get vacation pay for the normal holiday shutdown, then will receive unemployment benefits and supplemental pay from the company that total about 85% of their normal pay.

GM, meanwhile, put the brakes on construction of a Flint, Mich., plant that would make 1.4-liter engines for its upcoming Chevy Volt plug-in electric car and its compact Chevrolet Cruze.

GM and Chrysler have said they need about $4 billion immediately to avert running out of cash in January. Ford says it has enough cash for now.

The White House, which has indicated it will aid the U.S. automakers, said it was aware of the latest GM and Chrysler moves, but gave no hint of when a plan would be announced. It has been expected this week.

"It's clear that the automakers are in a very fragile financial condition and they're taking steps to deal with it," press secretary Dana Perino said. "We're aware of their financial situation and are considering possible policy options to provide assistance in an appropriate way. As we've said, a disorderly collapse of the auto industry should be avoided."

Meanwhile, signaling that the car sales decline is global and deepening, Japan's Honda Motor issued its third profit warning this year, slashing its operating forecast by two-thirds. The revision could touch off similar moves at Japanese rivals Toyota and Nissan. All are reeling from falling sales and the dollar's 13-year lows vs. the yen.

Chrysler, in a statement, said dealers are unable to close sales and estimate that 20% to 25% of their volume has been lost due to tight credit.