Business Notes AUTOMOBILES

Whenever the U.S. economy develops engine trouble, Detroit's automakers are among the first to pull over to the side of the road. True to that tradition, General Motors acknowledged last week that it was likely to report an operating loss for the fourth quarter, its first such deficit in four years. The world's largest auto company had operating income of $109 million in the third quarter before a $2.1 billion charge for plant closings pushed it into the red. GM attributed its latest problems to slack demand that has led the company to reduce its fourth-quarter car and truck production in the U.S. and Canada by nearly 17% compared with the same period a year ago.

Even as GM braked, Toyota shifted into high gear. The Japanese firm announced an $800 million expansion that will nearly double the capacity of its two-year-old Georgetown, Ky., complex, which now produces 230,000 mid-size Camrys a year. Toyota said the expansion will increase the plant's work force of 3,450 by more than 40% when the new facility opens in 1993. Along with an expansion under way in Fremont, Calif., the move will double Toyota's annual U.S. plant capacity to 600,000 cars and trucks.