On Friday, General Motors Corp. stated that it will temporarily close 20 of its factories across North America and reduce vehicle production while it tries adjust to the decline in automobile demands. The company will cut 250,000 vehicles from its production schedule for the first quarter of 2009. They normally produce 750,000 automobiles for that quarter. Many of the plants will be closed for the whole month of January and employees will be temporarily laid off and will receive part of their normal wages. They could be able to apply for state unemployment benefits. GM reported that its sales are down 41 percent for November and are down 22 percent for the first 11 months of 2008.
General Motors currently trying to obtain Government loans to be able to stay in business. The White House says that it might go into its $700 billion Wall Street Bailout fund to help GM and Chrysler. The entire automobile industry is having to make cuts due to the decline in the demand of automobiles.
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