General Motors (GM) suspends work in European factories
Posted by: in Companies Competitive StrategyFiled under: International markets, Bad news, Products and services, Management, Competitive strategy, General Motors (GM), Employees, Recession, Financial Crisis
For Detroit automaker General Motors (NYSE: GM) the tough times are being felt outside of the United Says as sales declines in Europe are forcing the troubled manufacturer to suspend production at some European factories.
As the financial crisis that’s being felt in America continues to spread, demand for autos outside of the country are also feeling the pressure, and in August, sales in Europe fell by 16%. As a result, General Motors has decided that it needs to reduce its 2008 production by about 40,000 vehicles by the end of the year.
To accomplish this production shift, the company is going to be shutting down several factories for a few weeks. Starting next week, GM’s factory in Eisenach, Germany, where the company produces its Opel brand, is going to start a three-week shut down period. This news comes as another of the company’s factories, one in Bochum, Germany is completing a current two-week shut down period to help reduce the company’s inventories. Other temporary shut downs are taking place in England and Spain.
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