10/20/07

GM Responds to Shrinking Pickup Market, Cuts 2nd Shift

Chevy Silverado and GMC Sierra pickups together represent about 22% of GM's U.S. sales.

For 2007 through September, Silverado sales are off 1.9% to 477,859 and Sierra is down 1.6% to 157,204 units.

Large pickups across the industry fell 2.6% in the same period.

With the full-size pickup segment continuing to shrink, on Friday, October 19, GM announced plans to eliminate second-shift production its Pontiac, MI, Truck plant.

The shutdown will ocur in May of 2008, but is being announced early to give workers time to adjust.

Job losses are expected to include 800 to 900 UAW Local 594 workers.

Friday's announcement follows GM's warning of 767 job cuts at its Detroit-Hamtramck, Michigan assembly plant. Hamtramck, which builds allow selling Cadillac DTS and Buick Lucerne sedans, will loose a shift in January.