WRAPUP 1-U.S. auto suppliers warn, cut jobs

CHICAGO, Dec 19 (Reuters) - Two leading U.S. auto suppliers underscored on Friday the scope of the auto industry's problems when one said it would cut thousands of jobs and another withdrew its financial forecast for 2008.

Federal Mogul Corp (FDML.O) said it would cut 4,600 jobs from its already reduced workforce in response to what it called "continued challenging conditions" in the global automotive market.

And Visteon Corp VC.N said it would withdraw its already reduced sales forecast for 2008 because of "larger than anticipated declines in global vehicle production and overall industry uncertainty."

On Friday, the U.S. government said it would give $17.4 billion in loans to General Motors Corp (GM.N) and Chrysler LLC [CBS.UL], both of which have said they desperately needed cash infusions to survive.

Businesses such as parts makers that are reliant on the auto industry have seen declining profits as vehicle sales plummeted worldwide.

Federal Mogul, which makes pistons, spark plugs, bearings and other parts, did not say on Friday which of its factories would be affected, but it said the job reductions would start in the first quarter of 2009.

"These measures are required to prepare the company for the unprecedented challenges in the automotive industry," Jose Maria Alapont, Federal Mogul's president and chief executive, said in a statement.

In October, Visteon said it would cut 2,800 jobs. It lowered its full-year 2008 outlook by $600 million to $9.4 billion, and said it would no longer provide financial guidance for 2009 due to uncertainty in the industry.

At the time, Visteon said it expected to complete its plan to cut 800 salaried jobs by the first quarter of 2009, which it estimated would cost up to $60 million. (Reporting by James Kelleher)