General Motors Cuts Hungarian Production

Things are getting worse for American car manufacturer General Motors, even after the departure of CEO Rick Wagoner, as sales around the world show only slight signs of recovery. Furthermore, GM today announced that it will cut engine production Hungary, with the already boring economic recession as the main reason. In essence, General Motors will introduce a four-day working week at the Hungarian plant in order to avoid axing jobs, Autonews reported today quoting the news agency MTI.

Moreover, it seems like the GM Europe has already reduced production in several other segments in Hungary by turning to four-day work weeks, the aforementioned source added, despite that no other details have been provided in the past.

At this time, GM's Hungarian production facility in Szentgotthard is responsible for the manufacturing of 1.6- and 1.8-liter four-cylinder gasoline engines for several models belonging to the brands it owns, including Opel/Vauxhall and Saab. In addition, the factory is also building six- and seven-speed automatic truck transmissions, according to the aforementioned source.

General Motors reported 45 percent down sales in March compared to the same month of the year before but even so, company officials claim the results are still showing the first signs of recovery, especially in the US market. GM's total car sales of 68,877 units represented a 41 percent drop compared to March 2008 while truck sales, including crossovers, of 87,503 vehicles were down 47 percent.

"Sales for GM and the industry showed signs of life at the end of the month compared with January and February. In April, we're stepping up to the plate to get a rally underway with 'GM Total Confidence,' our unprecedented customer protection package," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing.