GM to cut production by 250,000 units

Following the Senate’s failure to pass the auto bailout legislation, GM announced today that it will cut production in the first quarter by 250,000 units. During the beginning of 2009, GM will shut down most North American assembly plants for about 30 percent of the first quarter. A spokesman would not confirm which plants the automaker will shutdown.

The 250,000 units of production includes the 60,000 units that were announced earlier last week. Workers at two plants including Kansas City and Spring Hill were notified earlier this morning that they will be down from the holidays through Feb. 9th.

GM also said that it will lay off 300 workers indefinitely at its Mansfield, Ohio plant starting next Friday.

Source: Detroit Free Press