General
Motors will next week close two North American assembly plants and lay off temporarily
4,900 workers to slash its unsold car and truck inventory.
Under a deal agreed between the United Auto Workers union and GM, staff laid
off temporarily still receive 95 percent of their regular pay.
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"These are scheduled down weeks for the facilities in order to reduce
inventory," said GM spokesman Tom Wickham.
The plant in Oklahoma City which builds the Chevrolet Malibu sedan, and the
Buick Regal, Century and Chevy Lumina assembly facility in Oshawa, Ontario,
are being idled.
GM is cutting output in the first quarter of 2001 by 21 percent compared with
last year and will reduce second-quarter production by 17 percent.
GM currently has about 87 days’ supply of unsold vehicles; the industry norm
is 60 days.
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