GM Cuts Truck Shifts at Ohio and Louisiana Plants

General Motor CEO Rick Wagoner's restructuring plans announced on July 15, 2008, have led to the cutting of truck shifts at GM's Moraine, Ohio, and Shreveport, Louisiana, plants. The decision on the plants was made on July 28, 2008, and the cuts will occur at the end of September 2008. The restructuring plans were made following three years of operating losses totaling $51 billion and will include the sale of the Hummer brand in order to raise $4 billion in asset sales by 2009. Difficult economic times anchored with record high fuel prices have helped lower GM's first-half sales 16 percent. The restructuring package also included cost cuttings of $10 billion by the end of 2009.

According to GM spokesman Tony Sapienza, the shift cuts will take total production cuts to "just under the 300,000 unit marker." GM models affected by the shift cuts at the Moraine plant include the Chevy TrailBlazer and GMC Envoy SUVs. Nearly 1000 jobs, hourly and salaried, will be lost as the plant is scheduled to be closed by 2010. The Shreveport plant produces the Hummer H3 SUV and the Chevy Canyon compact pickup truck and will lose 760 jobs.

Aside from these two plants, a dedicated plant in Indiana for Hummer H2 SUVs will also slow production, along with an SUV and pickup truck plant in Silao, Mexico. These two plants would also experience shutdowns spanning one to five weeks sometime before the end of 2008 in order to cut output further.

GM's shares remain down nearly 55 percent since last year and had reached a 54-year low earlier in July. The layoffs coupled with production output are expected to keep cash flow as GM struggles to get through the rough times and changing automotive market.

Source: Automotive News