The Thai unit of troubled US carmaker General Motors Corp said on Thursday it would shut down its Rayong plant for two months from mid-December due to falling demand caused by the global economic slowdown.

The factory, about 150 km southeast of Bangkok, produces pickup trucks, sport utility vehicles, sedans and compact cars for the Thai market, and also exports to the rest of Southeast Asia and Australia.

GM Thailand also planned to cut 258 jobs at the plant, which produced about 100,000 vehicles last year, director of public relations Chartchai Suwanasevok told Reuters.

"We plan to close the plant to help control costs and our 2,000 workers will be paid 75 percent of their monthly salary during the shutdown," he said.

The plant's 2008 production was expected to be lower than last year, Chartchai said, but he did not give a specific figure. Its annual capacity is 130,000 vehicles.

The shutdown was latest example of the drastic measures being taken by the once-mighty US auto industry to stave off the impact of a massive slowdown in sales due to a looming recession.

The Big Three -- General Motors, Ford Motor Co and Chrysler -- are seeking a $25 billion bailout from US taxpayers to avoid bankruptcy, but the prospects for a rescue package this week appeared dim.

The global auto industry has been struggling with shrinking sales as a deepening financial crisis begins to take its toll on the global economy.

In South Korea, GM Daewoo decided last week to suspend car production for two weeks from Dec 22 in the face of sluggish demand, and will consider further suspensions if necessary.

Thailand is the world's biggest maker of one-tonne trucks and the auto industry is a major contributor to the country's export-dominated economy.

Other automakers operating in Thailand include Ford, Toyota Motor, Honda, Mazda Motor Corp and India's Tata Motors Ltd. - Reuters