Monday, October 20, 2008
DETROIT — General Motors Corp. has told local union officials at its Lordstown complex that it will not allow any more unscheduled overtime, a move seen as a way to further cut costs.
GM is burning through about $1 billion in cash per month and has promised to raise $10 billion through cost cuts and another $5 billion through asset sales and borrowing as it tries to outlast a U.S. auto sales slump that could run into 2010.
Union officials at factories in Lordstown, where GM makes the Chevrolet Cobalt and Pontiac G5, and Orion Township, Mich., which makes the Chevrolet Malibu, each said they were told of the overtime ban Friday.
The officials did not know if the ban affected just their plants or if it was companywide.
GM spokesman Tony Sapienza said Monday the company has not announced any ban on unscheduled overtime, but it is looking at ways to conserve cash.
“Officially we haven’t told employees anything,” he said. “As we weather very difficult economic conditions, we’re looking at a variety of ways to be as efficient as possible while balancing the needs of the market for our products.”
For the complete story, see Tuesday’s Vindicator and Vindy.com.