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GM and Ford to Idle 13,300 Workers

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Bloomberg News

Auto makers General Motors Corp. and Ford Motor Co. will shut five plants for a week beginning Monday, idling as many as 13,300 workers, as part of previously announced plans to reduce production as auto sales slow.

GM, the largest auto maker, will idle plants in Orion Township, Mich., where 3,200 workers make Buick and Oldsmobile sedans, and in Wentzville, Mo., where 2,200 employees build full-size vans, spokesman Tom Wickham said.

Ford will idle its Wayne, Mich., factory that produces the Focus small car. A plant in Avon Lake, Ohio, that makes Mercury minivans will remain closed for a third week and a plant in Lorain, Ohio, that makes full-size vans will remain closed for a second week, spokeswoman Cheryl Eberwein said. The plants employ a combined 7,900 workers, Ford said.

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General Motors is cutting third-quarter output by 89,000 cars and light trucks, while Ford expects to trim North American production by 122,000 vehicles as auto sales slow and domestic makers lose market share to overseas-based rivals.

The United Auto Workers contract guarantees workers 95% of base pay, including state unemployment benefits, when they are idled.

GM shares fell 99 cents to $56.21, while Ford fell 23 cents to $20.08, both on the NYSE.

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