General Motors

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will cut 2,000 jobs at plants in Michigan and Ohio, and slow production at nine other plants.

"We're just reacting to the continuing tight credit market and low consumer confidence," says GM spokesman Chris Lee. "With sales continuing to be depressed year over year, we are continuing to align our production with market demand."

GM will eliminate the second shift at its Delta Township plant near Lansing, Mich., on March 30. It will eliminate the second shift at its Lordstown, Ohio, plant on April 6. The plants produce a variety of GM products.

Additionally, Lee said, "We are telling nine U.S. plants and one in Canada that they will take some number of down weeks in the first and second quarters."

GM recently cut its 2009 domestic sales forecast to 10.5 million. The last time domestic vehicle sales fell below 12 million was 1982, when the total was 10.4 million, according to J.D. Power and Associates. In 2008, domestic sales were 13.2 million, down 18% from 16.1 million in 2007.

GM shares were trading early Monday afternoon $3.42, down 7 cents.

Ford

(F) - Get Report

shares were trading at $1.99, up 19 cents.