DETROIT, Michigan, Nov 30 (AFP) - General Motors Corp. said Tuesday that it will lay off all the employees at its Linden, New Jersey assembly plant, in early 2005, effectively shuttering the plant ahead of schedule.
The automaker formally notified employees, union representatives and state officials of its decision Tuesday, GM spokesman Dan Flores said.
Flores said the timing of the decision reflected the slowing demand for the two "vintage" sport utility vehicles made at the plant, the Chevrolet Blazer and the GMC Jimmy.
Sales of the Blazer were off about 28 percent to just over 31,000 units in the first 10 months of this year compared to the same period in 2003. No Jimmy's have been sold this year to date in the United States, according to Autodata Corp.
The vehicles, which were launched in 1995, were replaced by the Chevrolet TrailBlazer, the GMC Envoy, in 2001, and sagging sales have forced GM to gradually ratchet down production at the aging plant.
In 2002, GM reduced the plant to one shift, and there have been frequent shutdowns this year, with only two weeks, or less, of production each month, Flores said.
Under its contract with the United Auto Workers Union, GM cannot officially close the plant -- during the last round of contract negotiations, the union only consented to the closure of a Baltimore, Maryland, assembly plant and a foundry in Saginaw, Michigan.
But union officials acknowledged Tuesday that the facility had been set to close its doors in the summer of 2005.
The plant employs 1,650 hourly and 110 salaried workers.
11/30/2004 16:57 GMT - AFP