GM announced on Monday that it will be scaling back production and issuing temporary layoffs at its engine plant in Buffalo, NY, as automakers around the world feel the fallout from Japan. The Tonawanda plant makes 4- and 5-cylinder engines used in the Chevrolet Colorado and GMC Canyon compact pickup trucks, which are in turn, assembled in Shreveport, LA. The Shreveport plant was shut down this week due to a shortage of parts from Japan, and thus does not need the engines.
Tonawanda has all the parts it needs for production, but production was slowed in order to prevent a backup due to the incapacity of the Shreveport plant. A spokesperson for GM has said that it is unknown when the plants will reopen.
Of the 623 workers at the Shreveport plant, 59will be affected, and will receive about 75% of their pay while laid off.
Ford and Chrysler have not slowed production, but are monitoring the situation closely.
Japanese manufacturers have slowly resumed production, but rolling blackouts still roll.
– By: Stephen Calogera
Source: Free Press