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General Motors to shut plants
DETROIT, Dec 18: General Motors Corp will close assembly plants in Texas and Ohio and lay off at least 10,000 white-collar workers next year In a mov^to reverse record North American losses, a newspaper reported Wednesday.
GM will shut down plants in Arlington, Texas, and Moraine. Ohio, ending weeks of speculation about how .the automaker would offset slumping sales, the Detroit Free [Tess reported.
As many as 15,000 white-collar jobs could be eliminated, the newspaper said, citing sources it didn't name.
GM Chairman Robert Stempel planned to disclose the cutbacks to employees in a satellite broadcast and at a news conference Wednesday afternoon.
The Arlington plant in suburban Dallas, where the Buick Roadmasler, (Chevrolet Caprice and Cadillac Brougham arc ' made, employs 3,200 hourly workers. At moraine, a subur of
Day ton tn southern Ohio, 3,200 hourly workers. At Moraine, a suburb of Dayton in southern Ohio, 3,200 hourly employees make the CMC Sonoma and Yukon, and Chevrolet's S-10, S-Blazcr and typhoon.
Analysts had speculated that the streamlining was likely to include shutting down four lo five assembly plants, some component and parts plants and more white-collar buyouts of layoffs.
The Free Press, citing what it described as "executives and analysis in and outside GM, said the white-collar positions would be cut mainly through layoffe.
Analyst Jean-Claude Gruct of UBS Securities in New York told the newspaper that reductions of the white-collar force would help appease the United Auto Workers Union. If Stempel cut management first, the union could be more receptive to reducing numbers of hourly workers, he said.
The UAW may be willing lo
meet GM halfway. Bul they're not going to give an inch unless GM greatly reduces its white-collar labour force," Gruct said. "Since 1985, GM has reduced its blue-collar work force by 30 per cent and Its salaried employees by only 15 per ctnL Thal won t do."
GM's only comment before Wednesday's scheduled announcement on the restructuring of its core North American operations was a statement Tuesday that there wouldn't be any management changes.
For weeks rumours have circulated in Detroit and on Wall Street that Lloyd Reuss could be on the way oul as GM's president. He has been in command of al) or part of the colossal automaker's most-important business since February 1986.
The current speculation concerning top-level management changes is totally unfounded," GM said in its statement.