GM to idle 8 production plants to reduce inventory

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The Associated Press

DETROIT (January 4, 2001 4:33 p.m. EST http://www.nandotimes.com) - General Motors Corp. will idle eight plants and about 21,000 workers in the United States and Canada next week in an effort to reduce its inventory of unsold vehicles.

Car plants in Wilmington, Del., Kansas City, Kan., Ste. Therese, Quebec, and Orion Township, Mich., and truck plants in Doraville, Ga., Shreveport, La., Linden, N.J., and Wentzville, Mo., will be idled.

Ford Motor Co. and the Chrysler arm of DaimlerChrysler AG have also announced rotating one-week plant shutdowns for much of January.

The moves follow a sharp decline in U.S. auto sales, with no recovery in sight over the next few months.

Automakers are trying to avoid stimulating sales with higher incentives, believing that the cost of plant shutdowns is cheaper.

U.S. workers covered by the United Auto Workers will get 95 percent of their regular pay, while Canadian Auto Workers will get 65 percent.

GM said Wednesday that its December sales were down 18 percent.

-- kevin (ktross@mailcity.com), January 04, 2001


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