GM Announces Significant Production Cuts for first quarter, 2009 - Gm reacts to Rapidly Deteriorating Market Conditions

GM's cut backs will start to raise unemployment in the US, Canada and Mexico directly and probably in the other 31 countries where it manufactures vehicles. General Motors plans a cut production for the first quarter of 2009, due to the continuing, severe drop in industry sales. The sales were down 36 percent in November overall and 41 percent for GM (2007 vs. 2008). The impact of reduced sales and production will result in the temporary idling of approximately 30 percent of GM's North American assembly plant volume during the first quarter of 2009. It will also remove approximately 250,000 units from production.

The speed and severity of the U.S. car market's decline has been unprecedented in recent weeks as consumers digest the collapse of the financial markets and the resulting lack of credit for auto financing.

The following U.S., Canada and Mexico operations impacted by GM's announcement include:

* Ft. Wayne (Ind.) - Chevy Silverado, GMC Sierra Light Duty Regular and Extended Cab
* Flint Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Regular and Crew Cab & Medium Duty
* Wentzville (Mo.) - Chevy Express, GMC Savanna
* Lansing Delta Township (Mich.) - Buick Enclave, GMC Acadia, Saturn Outlook
* Pontiac Assembly (Mich.) - Chevy Silverado, GMC Sierra Heavy Duty Extended Cab
* Spring Hill (Tenn.) - Chevy Traverse
* Fairfax Assembly (Kan.) - Chevrolet Malibu/Hybrid, Saturn Aura/Hybrid
* Arlington Assembly (Texas) - Full Size SUVs: Chevy Suburban, Tahoe & Tahoe Hybrid, GMC Yukon, Yukon XL & Yukon Hybrid, Cadillac Escalade/Escalade ESV & Escalade Hybrid
* Lansing Grand River (Mich.) - Cadillac STS & CTS
* Orion (Mich.) - Chevy Malibu, Pontiac G6,br> * Detroit-Hamtramck (Mich.) - Buick Lucerne, Cadillac DTS
* Shreveport (La.) - Chevy Colorado, GMC Canyon, Hummer H3 & H3T
* Bowling Green (Ky.) - Chevy Corvette, Cadillac XLR
* Wilmington (Del.) - Pontiac Solstice, Saturn Sky, Opel GT

* Oshawa Consolidated - Chevy Impala
* Oshawa Truck - Chevy Silverado, GMC Sierra Light Duty Extended and Crew Cab
* CAMI - Chevy Equinox, Pontiac Torrent

* Silao - Chevy Silverado, GMC Sierra Light Duty Crew Cab, Chevy Avalanche, Cadillac Escalade EXT
* Ramos 2 - Chevy HHR, Saturn VUE, Chevy Captiva
* San Luis Potosi - Chevy Aveo, Pontiac G3

As a result of these assembly plant cutbacks, GM will also continue to assess its powertrain and stamping capacity needs and make changes as needed.

General Motors Corp, the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling.

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