GM to Halt Production at Thailand Plant

BANGKOK, Thailand -- General Motors (GM) said Thursday it will stop production at its Thai plant for up to two months, joining other global vehicle manufacturers in cutting production as the global downturn hits sales.

The truck assembly line at the plant in the eastern seaboard province of Rayong will close for one month from mid-December while the passenger car assembly line will shut for two months from late November, said Chartchai Suwanasevok, director of public relations at GM Thailand.

The Rayong plant, which has annual capacity of 130,000 vehicles, produces one-ton pickup trucks, compacts and sedans for export and the local market. Production last year was about 100,000 vehicles, mostly pickup trucks, and totals 93,000 units so far this year.

"We have seen the situation of falling demand of the past two months and the continuing deterioration in the world economy. The stocks we have can last into January without new production," said Chartchai. "Production next year is going to be lower than this year for sure."

Some 2,000 workers will be sent home and paid 75% of their normal salaries while furloughed, he said. Shutting the plant will also help the company to save on costs such as transport and meals for workers.

Japan's Toyota(TM) wouldn't confirm media reports it also plans to cut production in Thailand, a major regional production center for automakers.

"At this moment Toyota does not have an official announcement about Thailand. There may be some adjustment. It depends on demand and supply," said a company spokesman, who spoke on condition of anonymity as he wasn't authorized to speak about the matter.

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