GM to Lay Off Up to 2,850 Employees

DETROIT Reuters reported that General Motors Corp., the world's largest automaker, on Thursday said it would lay off 1,100 employees at its Linden, New Jersey plant and up to 1,750 employees in Orion Township, Michigan.

The automaker said weak market demand prompted the workforce reduction, which will be effective April 15. GM said the cuts will take several weeks to be fully implemented, as both plants change from two shifts of workers to a single shift.

GM also said it is considering investing as much as $325 million in Orion to place a new vehicle in the plant, but is still working with union and government officials on such a deal.

The New Jersey facility, used to assemble mid-size pickup trucks and sport utility vehicles, currently employs 2,272 hourly and 212 salaried workers, according to GM's Web site. The Orion facility makes large sedans, including the Pontiac Bonneville, Buick Park Avenue, and Oldsmobile Aurora.

North American light vehicle sales have plunged since hitting record highs in the fall, as zero-interest financing programs have been retracted and the economic slowdown weighs on consumers.