GM Generali

Generali (AQEU:GM)
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General Motors Corp. (GM) will halt production at its Thai plant from March 23-27 because of a sharp drop in consumer demand, the automaker said Friday.

The company has already closed the plant twice temporarily since last December because of the global financial crisis, but said it remains committed to the Thai market.

"We are self-sustainable and we believe that the merits of our projects to Thailand are clear and compelling," GM said in a statement, adding that the Thai unit wasn't on the brink of bankruptcy.

The Thai unit of GM has already asked for Thai government support in facilitating funding sources for its future investment in a THB15 billion diesel-engine and one-ton pickup project. It would be GM's first diesel-engine plant in Southeast Asia.

The Thai government is still considering GM's request, but it indicated earlier it wouldn't offer GM any support. The car maker says it will pursue other sources for the funding, including tapping local banks, if its bid for assistance is denied.

GM's existing Thai plant in Rayong, southeast Thailand, is expected to produce a total of 50,620 vehicles this year, a fall of 52% from 104,461 in 2008.

The company has also been forced to reduce its headcount by around 700 employees, out of the total of 3,000. It said Friday that it currently has no plans to layoff more workers.

-By Leigh Murray, Dow Jones Newswires, 66 2266 0744; leigh.murray@dowjones.com