GM, Honda cut production; GM to temporarily shut 20 plants

ByABC News
December 12, 2008, 1:48 PM

DETROIT -- GM will temporarily close about 20 factories across North America.

The move affects most plants in the U.S., Canada and Mexico. Many will be shut down for the whole month of January.

Spokesman Tony Sapienza said normal production would be around 750,000 cars and trucks for the quarter.

GM and nearly all automakers who sell in the U.S. are mired in the worst sales slump in 26 years.

Cash-strapped GM is seeking government loans to stay in operation beyond the end of the year. The White House says it may tap the $700 billion Wall Street bailout fund to help GM and Chrysler stay in business after the Senate blocked a measure to provide $14 billion in immediate loans.

Honda spokesman Ed Miller said Honda's cuts will take place at five of Honda's seven plants in the U.S. and Canada. Employees at the plants will be given other tasks or can take paid or unpaid vacation time, he said. No layoffs will result from the cuts, he said.

Another Honda spokesman, Ron Lietzke, said production will be scaled back at the company's engine plant in Anna, Ohio, and its transmission plant in Russells Point, Ohio.