The Daily Sandwich

"We have to learn the lesson that intellectual honesty is fundamental for everything we cherish." -Sir Karl Popper

Location: Boston, Massachusetts, United States


Tuesday, December 13, 2005

After cutting 30,000 US jobs, GM moves to India

It was obvious years ago that American auto manufacturers were pursuing a very dangerous policy by continuing to produce gas-guzzling SUVs and ignoring the future of hybrid vehicles. Now American workers are going to pay the price.

BANGALORE, India - General Motors Corp. said Tuesday it plans to nearly triple the number of cars it produces in India to meet growing demand in the South Asian country.

The announcement came just weeks after the company said it would slash 30,000 jobs and scale back production in the United States.

GM previously had announced plans to increase production in India from more than double the 25,000 cars a year it currently produces in the country. Lawrence Burns, vice president for research and development, said Tuesday that the number of vehicles made in India would eventually reach 80,000. (. . .)

GM said in November that declining sales and rising health care costs would force it to close 12 North American manufacturing facilities by 2008 and cut 30,000 jobs, which represent 17 percent of GM's North American hourly and salaried work force of 173,000.

The plan will cut the number of vehicles GM is able to build in North America by about 1 million a year by the end of 2008. GM will be able to build about 4.2 million vehicles a year in North America, down 30 percent from 2002.