GM plant will shut to prepare for new line

? General Motors will shut down its plant in Kansas City’s Fairfax Industrial District for up to three months next year to prepare for production of a new generation of passenger cars, company spokeswoman Sharon Baldwin said.

GM, the world’s largest automaker, originally planned to make the change to the Epsilon without a layoff, Baldwin said, though it is not unusual for employees to be out of work while plants are retooled for a new model. Now, she said, GM plans to close the Fairfax plant for up to three months during the second quarter of 2003, which runs from April through June.

“We did notify employees there will be some layoffs during that time,” Baldwin said.

Jim Russell, president of the United Auto Workers Local 31, said 2,900 of the plant’s 3,000 hourly employees could lose their jobs while the plant is retooled for production of the Epsilon.

During that time, employees would receive unemployment benefits and supplemental unemployment benefits, amounting to 90 percent of their pay, Russell said.

Baldwin said GM has invested $500 million in the Fairfax facility to produce the Epsilon.

The plant currently makes the Pontiac Grand Prix and Oldsmobile Intrigue. Baldwin said that after June, the plant would stop building the Intrigue and the Grand Prix coupe, but would continue making the Grand Prix sedan.

The changeover to the Epsilon will begin at the end of the first quarter of 2003, Baldwin said, with production of the new mid-sized model expected to start in the third quarter of 2003.