GM to Cut 300-400 Jobs, Slowing Production at Tennessee Plant Due to Slow Sales of Ion

DETROIT August 12, 2004; The AP reported that General Motors says it is cutting 300 to 400 jobs and slowing production at its Saturn assembly plant in Spring Hill, Tenn., because of slow sales of the Ion compact car.

The automaker told employees this week that it will reduce the number of work crews in the plant from three to two, effective Sept. 7. The plant now operates with three crews of 300 to 400 workers over two shifts, six days a week.

GM will offer some idled workers a special separation package that has not been determined. Others employees will be reassigned.

The factory employs 5,600 workers, including those who build the Saturn Vue sport utility vehicle.

"It's unfortunate that we're making this production adjustment," GM spokesman Dan Flores told The Detroit News for a story Thursday. "But we couldn't justify production at the current level given market demand."

Ion sales are down 10 percent so far this year compared with the first seven months of 2003. Lagging demand has forced Saturn to idle the Ion production line for 13 weeks over the past 10 months.

GM's board decided Aug. 3 to spend $400 million to $500 million to upgrade the Spring Hill plant to produce the next generation of the Ion and Vue.

General Motors Corp.: http://www.gm.com/

Saturn: http://www.saturn.com