GM Announces More Layoffs(2,000),Production Cuts Amid Falling Demand

[Pale Blue Dot]

Source: Money

DETROIT -(Dow Jones)- General Motors Corp. (GM) on Monday said it will lay off 2,000 more workers this spring and schedule down time at most of its assembly plants in the face of declining sales.

The downsizing is needed even though GM virtually halted production this month and slashed output by 20% in 2008.

GM this spring plans to cut shift at a small-car factory in Ohio and a plant in Michigan that makes crossovers including the GMC Acadia and Buick Enclave, a company spokeswoman said. About 800 workers will be laid off in Ohio and 1,200 in Michigan. Additionally, GM is planning to idle 14 of its 24 North American assembly plans for a week or more in the second and third quarter.

GM and other auto makers are struggling to match production with slumping, gyrating demand for vehicles. The U.S. auto market last year sank to per-capita lows unseen since World War II and the decline is expected to continue in 2009.

Meantime, wildly fluctuating fuel prices have led to flip-flopping tastes among consumers. Last summer when gas was $4 per gallon, fuel efficient cars were in short supply. Now, with gas closer to $2 per gallon, buyers are looking for bigger trucks and sport-utility vehicles.

Read more: http://money.cnn.com/news/newsfeeds/articles/djf500/200901261105DOWJONESDJONLINE000344_FORTUNE5.htm

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I'm sorry to be a broken record, but these major cuts are coming in at an unprecedented pace today.

[OhioChick]

1. You're not kidding...

This is getting frightening.

K&R

[NMDemDist2]

2. 50,000 cuts in LBN this morning, this is the smallest announcement of the bunch

Mon Jan-26-09 09:12 AM
ING Group to Cut 7,000 Jobs

Mon Jan-26-09 07:38 AM
Home Depot to cut 7,000 jobs, exit Expo business

Mon Jan-26-09 06:28 AM
Pfizer to buy Wyeth for $68 billion, cut (8000) jobs

Mon Jan-26-09 06:25 AM
Sprint to eliminate 8,000 jobs

Mon Jan-26-09 06:12 AM
Caterpillar Moves to Cut 20,000 Jobs

[whistle]

3. Unemployment which is now at 7.2% representing some 9.72 million

...out-of-work people who desperately need jobs, will quickly snowball to 12.0 to 14 million if the economy is not turned around soon.

[Azlady]

4. ....... :-(