Business

GM cuts shifts to curtail SUV, truck production
by Paulina Neshybova

General Motors Corp announced on Monday that it will have to cut thier shifts in Ohio and Louisiana in the plants, because of weak demand for SUV and trucks by consumers. By this action they will eliminate many jobs, about 1, 760. Tony Sapienza, who is a spokesman of GM said, that they will have to cut the shifts in all the plants in Moraine, Ohio, SUV and Shreveport as all of them were producing trucks, so they will eliminate the production by about 117, 000 vehicles. The workers of course are not satisfied. In Moriane about 1000 people will loose their job and at Shreveport about 760.
We all know that this elimination is not sudden. GM was slowing their production of trucks for weeks according to their golas for consumers creating smaller and more efficient vehicles. Therefore they are adding other shifts to the plants which will make the fast-selling Chevrolet Malibu and Cobalt cars. Probably all the plants mentioned before will close in 2010 as a part of consumer preferences. They want to save some Money, about $15 billion through 2009.
They said, that this elimination was done sooner than they expected, thereore the employess were surprised about it and they awaited some kind of adjustment. But not only the weak demnad led to this. Also high gas prices and overall weak economy wear the big reason for drop in the sales of trucks. So now they plan to present six new small vehicles by the ned of 2012. The shares of these motor campanies also dropped. For example Ford shares fell 30 cents, or 5.9 percent, to $4.75.


related story: http://news.yahoo.com/s/ap/20080728/ap_on_bi_ge/gm_production_cuts;_ylt=Asoti.SJvtZvT.yJgjZ3GY2s0NUE

by Paulina Neshybova for PocketNews (http://pocketnews.tv)

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