General Motors scales back productionNovember 22nd, 2008 - 7:31 am ICT by IANS
New York, Nov 22 (DPA) Suffering US automaker General Motors Corp will again cut its production, the firm said Friday.It will add a week to holiday production halts at four plants and another factory in Canada that was slated to be shuttered will close two months earlier than planned, Bloomberg financial news reported.
Its sales have fallen 20 percent for the year and dived 45 per cent in October.
GM has made a joint plea with Ford Motor Co and Chrysler LLC for $25 billion from the bail-out package, but has so far been denied. The three companies’ chief executives testified before a skeptical Congress Tuesday and Wednesday.
GM also said Friday that it would cut its fleet of seven corporate jets by two aircraft. Automakers’ executives came under harsh criticism from Congress for the use of private jets even as they asked for assistance from Washington.
Revenues of automakers and their financiers have plummeted in recent months as banks stopped lending to each other and consumers struggled to gain access to car loans.