GM Strikes Trim U.S. Economy

General Motors Corp.’s two strikes here so far have trimmed 0.3 percentage point off the U.S. economy’s second-quarter growth rate, an economist said, as the world’s largest auto maker continued to curb production.

GM idled another 9,600 workers Thursday, bringing the total to 88,800, or 30% of its North American hourly work force. The strikes, which began June 5 and 11, have caused a parts shortage that has halted 80% of GM’s car and truck output.

By month’s end, the walkouts will have cut 0.5 point off the growth rate of the U.S. gross domestic product, the total output of goods and services, First Chicago NBD Bank economist Diane Swonk said. While auto makers will make up most of the output next quarter, Swonk said Ford Motor Co., Chrysler Corp. and other rivals might gain customers at GM’s expense.

She estimates second-quarter GDP will be 2.0% rather than 2.5% if the strikes continue to month’s end.

The auto maker represents about 1.5% of U.S. gross domestic product, and a 17-day GM walkout in 1996 cut the quarterly GDP by 0.5%.

GM shares fell 19 cents to close at $69.56 on the New York Stock Exchange.

The company Thursday also closed an Oklahoma City plant that makes the Oldsmobile Cutlass and Chevrolet Malibu, and a Doraville, Ga., plant that makes Chevrolet, Oldsmobile, Pontiac and Opel minivans.

The walkouts by 9,200 UAW members at a metal-stamping factory and a Delphi instrument-panel and engine-parts plant have forced the auto maker to shut 21 of its 30 North American assembly plants. The walkouts are costing GM as much as an estimated $50 million a day in pretax profit.

By today, only a Saturn small-car plant in Spring Hill, Tenn., a car plant in Ramos Arizpe, Mexico, and a handful of low-volume vehicle plants will be running, analysts projected--about 88% of GM vehicle production will be shut down, they said.

Talks between GM and the United Auto Workers union are scheduled to resume today. Negotiators have reported little progress.