Friday, December 12, 2008

GM to Slash Production in the First Quarter of '09

The dominos are falling. Next, you will see auto parts suppliers laying off workers due to lack of demand, the people that supply the auto parts suppliers laying off due to lack of demand... and on down the line we go, until this reaches into every part of the American economy that you can think of.

General Motors Corp., which is involved in a last-ditch effort to garner federal funds to help it survive through January, confirmed this morning that it is slashing approximately 250,000 units of production in the first quarter by shutting down most North American assembly plants for about 30% of the first quarter.

GM spokesman would not say which plants have been affected, but said the company would likely make an announcement later today.

The 250,000 units of production include 60,000 units of car and truck production already cut last week.

Workers at GM’s Kansas City, Kan., car plant and its Spring Hill, Tenn., crossover plant this morning said they were notified this morning that they will be down from the holidays through Feb. 9.

And it's not just GM - Honda is cutting production as well.

Also today, Honda Motor Co. announced it is reducing production by another 119,000 vehicles for its fiscal year ending March 31, bringing expected production for the fiscal year to 1.3 million units.

This is going to happen whether the Big Three gets their loans or not.

We are in some major trouble here, and this will affect Michigan more than any other state in the nation. Fasten your seatbelts, no pun intended, because we are in for a very bumpy ride.