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GM Van Nuys Plant to Close for 2 Weeks

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Times Staff Writer

General Motors’ assembly plant in Van Nuys, and four others in the United States and Canada, will shut down for two weeks beginning Jan. 5 because the cars they make are not selling fast enough, the auto maker confirmed Wednesday.

More than 15,500 hourly workers at the five plants, many of whom had already learned of the planned closings last week from their supervisors, will be affected. Of those, 2,200 work in Van Nuys.

Analysts said the move is in line with GM’s strategy of cutting production, rather than offering discount financing, to clear dealer lots.

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With previously announced closings, GM said it expects to have 29,100 workers on indefinite layoff by February, including 2,190 furloughed from Van Nuys in July.

Incentives to spur sales of leftover 1986 models in September contributed to a third-quarter pretax operating loss of $339 million for GM.

Although word of the closings spread to assembly lines last week, GM maintained that only its corporate Scheduling Committee, which met Wednesday in Detroit, could decide which plants would close. That group meets monthly to coordinate production needs with sales.

Dealers selling Chevrolet Camaros and Pontiac Firebirds, the models made in Van Nuys and at a plant in Norwood, Ohio, have a 100-day supply of cars, GM spokesman Carl E. Sheffer said. A 60-day supply for any model is considered ideal.

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