GM Slashes Production, 2,000 More Jobs

GM Slashes Production, 2,000 More Jobs

General Motors will eliminate shifts at plants in Ohio and Michigan, eliminating 2,000 jobs. Those plants make its Lambda-based SUVs, including the Buick Enclave and GMC Acadia, as well as the Chevrolet Cobalt compact. GM will cut production at 13 other North American plants in the second quarter.

In Lansing, Michigan, GM will begin alternating between morning and afternoon shifts at the plant that builds the Enclave and Acadia sport-utility models from February 2 until it eliminates the afternoon shift March 30. That will eliminate 1,200 jobs.

In Lordstown, Ohio, where the Chevrolet Cobalt is assembled, GM will use a similar alternate schedule beginning February 9. The second shift will end April 6, eliminating 800 jobs. The plant eventually will produce a new model, the Chevrolet Cruze, to go on sale in 2010.

Ironically, the Lordstown plant could not keep up with demand for the Cobalt when gasoline hit $4 a gallon. The plant was running on three shifts and overtime then.

The latest production cuts come at a time that GM is slashing costs and restructuring under provisions of its agreement with the U.S. Treasury Department so that it can keep the $13.4 billion in government loans.

Photo by GM

Workers assemble a Buick Enclave at GM's Delta Township, Michigan, plant near Lansing, Michigan.

GM already closed most of its two dozen plants in North American in January on the expectation of slowing sales. GM forecasters admit they are taking an extremely conservative stand in planning for 10.5 million industry sales in 2009, about the lowest forecast of anyone.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.