General Motors (GM) said it extended paid leave to roughly 400 employees Friday as export demand for its cars grinds to a halt.

A spokesman said that GM would extend its forced vacation for the workers to March 1 in the company's export division in Sao Paulo.

GM cited low demand for imported, unassembled, Brazilian-made cars as a reason for the extra, forced holiday.

The global credit crisis hit Brazil's automakers in October, and has since led to sharp declines in sales and layoffs across the industry.

GM has not yet laid off salaried employees, but has cut its temporary workforce and continues with its policy of paid leave in an attempt to cut production without cutting full-time jobs.

GM is Brazil's No. 3 automaker behind Fiat and Volkswagen.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com

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