GM looks at job cuts at PE plant

GENERAL Motors has adjusted output levels at its Port Elizabeth assembly operations and is considering options including voluntary job cuts as the vehicle maker prepares for a further drop in sales.

“Due to the deterioration in the economic environment and the anticipated resultant decline in vehicle sales‚ we have revised our production schedule‚” spokeswoman Denise van Huyssteen said.

“We are currently considering all alternatives‚ including voluntary separations‚ to minimise the impact of these changed circumstances on our business and on our employees.”

The vehicle maker was engaging with unions.

She declined to provide details of the production changes.

Vehicle makers begin wage negotiations with unions this week‚ hoping to avoid a repeat of crippling‚ weeks-long strikes that have paralysed the industry in the past.

Domestic new-vehicle sales declined last year for the second consecutive year and are expected to fall further this year‚ according to the National Association of Automobile Manufacturers of SA.

General Motors assembles the Chevrolet Spark‚ Chevrolet Utility and Isuzu pickup in Port Elizabeth. – Bloomberg

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