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  GM cuts 30 per cent capacity across N America for Q1

12 December 2008

 

Crisis-hit General Motors has announced swingeing cuts to its North American production schedules for the first quarter of 2009.

The cuts will remove around 250,000 units from production and will mean the temporary idling of 30 per cent of GM's North American plants, including factories in the US, Mexico and Canada.

GM said the cuts were in response to a 36 per cent drop in the industry overall and a 41 per cent drop in its own markets in November.

Plants that will be idled include the flagship factories at Fort Wayne in Indiana and Flint in Michigan. The cuts affect plants producing vehicles across the GM range, including smaller vehicles made in Mexico.

GM said that it would be reviewing its powertrain and stamping capacity needs to bring them into line with its revised vehicle production schedules.

The GM statement made no mention of whether the staff at the plants would be paid for the time lost.