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GM strikes slow Isuzu
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June 23, 1998: 8:07 a.m. ET
Plant shutdowns halt production of trucks; execs ask for spending cuts
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NEW YORK (CNNfn) - Labor strikes at General Motors Corp. continued to have an international impact as Isuzu Motors Ltd. in Tokyo on Tuesday said production of its trucks at two GM plants has been halted since last week.
Isuzu said production of its light- and medium-duty trucks and pickups has been at a standstill since last Thursday.
GM (GM), which holds a 37.4-percent stake in Isuzu, supplies parts for Isuzu trucks in its Janesville, Wisc. and Shreveport, La. plants.
Those plants, which have been shut down due to strikes by the United Auto Workers union, assemble a combined 2,500 Isuzu trucks.
An Isuzu spokeswoman said, however, the truck maker was currently able to meet its U.S. sales requirements for inventories.
Also, GM managers and employees worldwide have reportedly been asked to cut discretionary spending in an effort to save money during the prolonged strikes.
The Wall Street Journal reported two GM executives, Vice Chairman Harry Pearce and Chief Financial Officer J. Michael Losh, sent a memo to each business unit requesting they find ways to cut overtime, travel, off-site meetings and food and beverage service.
The move indicates GM is ready for a long battle.
The labor fight broke out when UAW members at two plants walked off the job June 5 at the Flint Metal Center stamping plant and June 11 at Delphi Flint East, which makes engine parts and dashboard instruments. Union officials at Flint Metal say GM has reneged on promises to invest $300 million in new equipment at the plant, while those at Delphi East say the automaker wants to contract out work that would mean the loss of 2,500 jobs at the plant.
GM officials have blamed the Metal Center walkout on UAW Local 659's refusal to change inefficient work rules that result in annual losses of $50 million at the plant.
Talks broke off Monday with no progress reported from either side.
Also on Monday, UAW officials vowed more strikes if GM continues to try to shift jobs to other countries.
Shares of GM (GM) closed at 68-1/16 in Monday trading, up 9/16. 
-- from staff and wire reports
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