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GM Sends NY Plant Workers Home

The effects of the quake and tsunami that took place in Japan a little over a week ago on the American automotive industry are beginning to show on continental USA, with the first major auto maker to take a hit being GM.

Last week, the car maker announced that it was halting production at the Shreveport, Louisiana assembly facility, where it manufactures the Chevrolet Colorado and GMC Canyon, because of the parts shortages from Japan. The plant will remain closed throughout the entire week of March 21.

The effects of the decision made last week by GM didn't take long to manifest themselves. As a direct result of the halt in production at Shreveport, the Buffalo, New York engine plant is now getting ready to reduce its personnel.

The Buffalo facility produces engines for the two models assembled in Shreveport and, even if the plant has enough parts to keep production running, it has nowhere to ship the engines to. As a result, according to Freep, GM said that 59 of the 623 workers in New York would be sent home and would receive only 75 percent of their pay, for an undisclosed period of time.

GM is trying to handle the crisis as best as it can, already announcing some reduction in the production of its cars in Europe as well. The main concern of the auto maker is to limit the financial consequences of the lack of parts from Japan, with more and more sources confirming the fact that the giant has decided to cut all non-essential spending worldwide.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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