General Motors Mexico plant to lay off 600 workers

MEXICO CITY, Feb 4 - General Motors Corp will lay off 600 workers at its plant in northern Mexico due to slowing demand from the United States, a spokesman for the U.S. auto maker's Mexican unit said on Wednesday.

The cuts will be applied during February and March at the Ramos Arizpe factory in Coahuila state that produces models like the Chevy, General Motors Mexico spokesman Angel Sanchez told Reuters.

It will be the second wave of layoffs in Mexico's auto industry after Volkswagen said last month it was cutting 900 temporary workers at its plant in central Mexico as the U.S. recession bites.

"We are having to make an adjustment to our staffing due to the issue of demand," Sanchez said. "Orders for the local market, but to a large degree for the export market, are coming down."

General Motors, the biggest car maker in Mexico with four plants staffed by some 13,000 employees, has already staged temporary shutdowns in recent weeks as the deepening global financial crisis has hit orders.

Other car makers in Mexico such as Toyota and Nissan Motor Co have also been forced to switch off production lines in recent weeks due to slumping demand in the United States, Mexico's top market.

In 2008, Mexican vehicle exports to the United States dipped 2.4 percent.