GM to Cut Output at 3 Plants, Affecting 1,500 Workers (Update2)

By Greg Bensinger

Oct. 16 (Bloomberg) -- General Motors Corp., the largest U.S. automaker, plans to reduce production at two Michigan factories and one in Delaware by Feb. 2 because of declining sales, affecting about 1,500 workers.

The cuts are in Wilmington, Delaware, involving 400 workers; Hamtramck, Michigan, with about the same number affected; and Pontiac, Michigan, with about 700 employees, GM spokesman Tony Sapienza said today in an interview.

The plants build full-size pickup trucks, large sedans and sports cars that have lost U.S. sales this year through September as GM's total has declined 18 percent. Industrywide sales tumbled 27 percent last month, the sharpest drop since 1991, as reduced availability of loans pinched automakers already hurt by gasoline prices that rose to a record in July.

The Wilmington plant will eliminate one shift as of Dec. 8, Sapienza said. The factory makes Pontiac Solstice, Saturn Sky and Opel Roadster sports cars.

At Hamtramck, hourly output is set to drop to 38 vehicles an hour from 56 effective Jan. 12. The plant produces Cadillac DTS and Buick Lucerne sedans. In Pontiac, which builds Chevrolet Silverado and GMC Sierra pickups, production is scheduled to fall to 24 trucks an hour from 55 starting Feb. 2.

Detroit-based GM notified affected workers on Sept. 29.

Ford Motor Co. said today that it will idle a St. Paul, Minnesota, factory that makes the Ranger small pickup for all of December. The shutdown will help match production to demand, Angie Kozleski, a spokeswoman for the Dearborn, Michigan-based company, said in an interview. The plant has about 760 employees.

GM gained 18 cents to $6.40 at 4:01 p.m. in New York Stock Exchange composite trading. Ford fell 3 cents to $2.27.

To contact the reporter on this story: Greg Bensinger in New York at [email protected]

Last Updated: October 16, 2008 16:11 EDT

Not good.....

I'm sure shareholders don't mind cutting output at three plants and tossing 1,500 workers out in the cold when they are out trying to acquire Chrysler for no useful purpose.

Who is in charge at GM again.......?

Six bucks and change is the going rate for GM stock nowadays?

Wonder how THAT happened....?

:AH-HA_wink: