General Motors Canada will temporarily lay off the third shift at its Oshawa car plant starting the first week of February in another blow to an industry reeling from thousands of job losses.

The news of the layoffs came on the eve of a deadline for Canadian carmakers to provide a restructuring plan to federal and Ontario politicians who have been asked to bail out the troubled industry.

The Canadian Auto Workers union says the move announced Thursday night will affect about 700 workers, but it was not clear how long the layoffs will last.

The line that builds Impalas at the GM plant is already scheduled to be down from next Monday until early January.

CAW spokeswoman Shannon Devine said the workers were told of the shift cut earlier in the evening.

"The plant is down as of next week until Jan. 12 and everybody is back for a few weeks and as of the first week of February the third shift is down," she said.

"It's indefinite but it is supposed to be temporary."

Oshawa Mayor John Gray said in a phone interview that it's discouraging to hear so much negative news about the auto sector.

"We've gone through these types of things before, but never, ever to this extent," Gray said.

"But to be consistently receiving bad news — first it was a shift at the truck plant, then it became the whole truck plant — now it's car production."

Gray said the "big frustration" auto-dependent cities face is what he called "wishy-washiness" from the federal government.

"I think they just got to make a decision — do they want to shed 400,000 jobs in the province of Ontario?"

Early Friday, some autoworkers expressed shock while others at the car plant took news of looming layoffs in stride.

Following his overnight shift, Mike Sadler said news of the latest layoffs in the auto sector were "quite a shock to everybody."

However, co-worker Bill Harris took a longer view, saying the latest negative news in the industry is "only a blip in the economy."

"Everything's going to come back, everything's going to be fine," he said.

GM could not be reached for comment.

Auto sector hurting

The cuts follow of thousands of layoffs in the auto sector in southern Ontario.

The neighbouring truck plant in Oshawa has already been slated to close, a move that will put 2,600 workers out of a job.

It also comes as auto executives from Detroit appealed to governments in the U.S., Canada and Ontario for financial aid to stave off the threat of bankruptcy. Tens of thousands of workers throughout North America have lost their jobs.

Auto executives in Canada have until Friday to open their books for federal and provincial officials, and provide a restructuring plan for their operations, most of which are located in southern Ontario.

Premier Dalton McGuinty said earlier Thursday that he would not allow the political crisis in Ottawa to stall any financial aid for the auto sector.

The Governor General prorogued Parliament until late January after meeting with Prime Minister Stephen Harper on Thursday morning.

A coalition of the Liberals and NDP with support of the Bloc Québécois had threatened to vote against the government on Monday, a move that would have toppled the Conservatives.

The opposition parties blamed what they say was the government's lack of action to guide the country through the international economic crisis.

Premier says he'll go all out to help industry

McGuinty, speaking at the opening of a Toyota plant in Woodstock, Ont., said he would take whatever action is needed to protect 400,000 jobs in the auto sector in Ontario.

Federal Industry Minister Tony Clement, who was at the opening, said there is still federal money available to help troubled automakers despite the suspension of Parliament.

It's still unclear how much money the automakers may request from Canada.

However, a news report said the head of Chrysler Canada wants $1.6 billion in financial aid immediately from Ottawa and Ontario.

In Washington, the Detroit Three are trying to persuade Congress to approve a $34-billion US rescue package.