GM to produce 138,000 fewer pickups and SUVs in 2008

GM announcd today that it plans to cut a shift at four North American factories that produces pickups and SUVs. The cur means the General will be laying off about 3,500 workers. Of course all this comes as a response to sluggish sales in the respective segments and high gasoline prices.

GM said the cuts mean the company will produce about 50,000 fewer SUVs and 88,000 fewer pickups in 2008.

Layed off workers will get unemployment benefits and supplemental pay that total 80 percent of their 40-hour gross pay.

“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said Troy Clarke, president of GM North America.


Source: MSNBC