GENERAL MOTORS Expect layoffs, company says

Demand for some of GM's most profitable products is waning.
KNIGHT RIDDER NEWSPAPERS
DETROIT -- General Motors Corp. has told more than 9,000 workers at five plants that primarily make SUVs and pickup trucks that they will be laid off for a week or more early next year as the company continues to reduce production of its vehicles.
That is in addition to the indefinite layoff of 900 workers in Pontiac, Mich., disclosed by GM last week. It is eliminating a third shift in January at Pontiac Assembly, which builds the Chevrolet Silverado and GMC Sierra pickup trucks.
GM spokesman Dan Flores said the cutbacks are a market-driven decision to bring production in line with "market forecasts and current demand," and he noted the automaker is also increasing manufacturing at some plants.
Hummer production
On Wednesday, GM announced it is investing about $250 million in its Shreveport, La., truck assembly plant to produce the Hummer H3 SUV. However, it's clear that demand for some of GM's most profitable pickup and SUVs is waning because they are at the end of their model lives. Rising gas prices may also be discouraging some consumers from buying bigger vehicles.
GM's decision to tell workers about production slowdowns more than two months before the start of the new year also seems to signal that the automaker is nervous about the upcoming sales year and its inventory levels, after reporting disappointing earnings results in the third quarter.
The world's largest automaker is scheduled to announce its first-quarter production forecast to the public in December.
GM management told hourly workers about downtime from one to four weeks at the following plants:
UArlington Assembly in Arlington, Texas, which builds the Cadillac Escalade, Chevrolet Suburban, Chevrolet Tahoe, GMC Yukon and GMC Yukon XL.
U Janesville Assembly in Janesville, Wis., which builds the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and GMC Yukon XL.
U Lansing Craft Centre, which builds the Chevrolet SSR pickup.
U Lansing Car Assembly, which builds the Pontiac Grand Am and Chevrolet Classic, the previous version of the Malibu.
U Oklahoma City Assembly, which builds the GMC Envoy XL, GMC Envoy XUV and Chevrolet Trailblazer EXT. On Jan. 17, the plant will reopen with a slower line speed, a move that is expected to result in longer-term job reductions. Flores said the size of any potential layoff in Oklahoma City is not yet clear.
Under union contract, workers who are temporarily laid off should get 95 percent of their normal take-home pay once unemployment and supplemental pay are combined. That amount is then taxed, which means workers would actually bring home 65 percent to 70 percent of normal pay. Some of those workers could also be moved into a so-called jobs bank, where they get full pay until they find a new job.