GM Plans Work Stoppages At Three Mexican Plants
February 23 2009 - 7:17PM
Dow Jones News
General Motors (GM) said Monday it's planning several days of
work stoppages at three of its plants in Mexico during March and
April to adjust production for falling global demand.
At its plant in the central city of Silao, which produces the
Chevrolet Avalanche, Cadillac Escalade and several models of
extended-cab pickup trucks, General Motors will stop production for
five days in March, officials told reporters during a conference
call.
Production will also be halted for five days in March at General
Motors' plant in the central city of Toluca, which has foundry
operations and assembles engines and Chevrolet Silverado
pickups.
At the auto maker's plant in the northern city of Ramon Arizpe,
where more than 600 layoffs are scheduled to take place this month
and next, General Motors plans to stop production for six days in
March plus the entire week of Easter, in April.
The Ramon Arizpe facility produces the compact Chevrolet Chevy,
as well as sport-utility vehicles Saturn Vue, Chevrolet HHR and
Chevrolet Captiva Sport.
"In order to maintain a balance between production and
inventories, we've had to adjust once again some of our operations
at our Mexican facilities," said Hector De Hoyos, director of
manufacturing for General Motors de Mexico.
The stoppages at the plants in Silao and Ramon Arizpe will
result in output reductions of between 800 and 900 cars per day at
each plant, De Hoyos said, though he declined to give production
numbers for the Toluca plant.
Workers affected by the plant stoppages will receive half their
salary and full benefits for the days they don't work, De Hoyos
said, noting that General Motors has no future layoffs planned for
any of its four Mexican plants.
General Motors also said it's applying for a program recently
set up by President Felipe Calderon in which the government plans
to help manufacturers pay workers during production stoppages in
order to avoid layoffs.
-By Paul Kiernan, Dow Jones Newswires; (5255) 5001-5726,
paul.kiernan@dowjones.com