GM Closing SUV Plant For Three Weeks

Automaker's Arlington, Texas, plant will be idled as it tries to reduce inventories of sport utility vehicles to match slower consumer demand for the big rigs.

FORT WORTH, Texas (AP) -- General Motors will idle its Arlington plant for three weeks as it tries to reduce inventories of sport utility vehicles to match slower consumer demand for the big rigs.
 
The shutdown will begin April 14 and affect 2,400 workers, the company confirmed on Friday.
 
Workers, most of them represented by the United Auto Workers, expect to continue to get most of their pay due to provisions of their contract with the auto maker.
 
The Arlington plant produces five models of large SUVs, and sales of each fell sharply last month from their year-ago levels as consumers felt the sting of higher gasoline prices. New orders from dealers have slowed, said plant spokeswoman Wendi Sabo.
 
Besides slowing SUV sales, GM has diverted some axles from Arlington to other plants that produce pickups. The parts are scarce because of a strike at supplier American Axle and Manufacturing Holdings Inc.
 
Jessica Caldwell, an analyst for auto-information Web site Edmunds.com, said GM may be betting on stronger demand for pickups when Ford and Dodge unveil new models this year. Such rollouts often spur sales of other similar vehicles, she said.
 
Workers at the Arlington plant produce 900 to 1,000 vehicles a day. They build the Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL, and the Cadillac Escalade.
 
Sales of the Escalade fell 25.7 percent in March from year-ago levels, and the others fell more than 30 percent.
 
Separately, union workers at Arlington and other GM plants have sent strike letters to the company, giving GM five days to work out issues in bargaining. If the impasse continues, the local unions could issue a notice of intent to strike.
 
Local plants negotiate over overtime and work rules in agreements that are separate from the national UAW contract.
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