GM to shut down 13 assembly plants temporarily
Last Updated: Thursday, April 23, 2009 | 7:59 PM ET
CBC News
Related
Internal Links
External Links
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
General Motors Corporation said Thursday it will temporarily shut down 13 assembly plants in the United States and Mexico between May and July, a move that will take 190,000 vehicles out of its production schedule.
GM said the shutdowns wouldn't affect operations that are in the process of launching new products, including the new Chevrolet Camaro built in Oshawa, Ont., and the Buick LaCrosse (called an Allure in Canada) launching soon at its assembly plant in Fairfax, Kan.
GM said its Canadian plants would take their usual two weeks of summer downtime during the weeks of June 29 and July 6.
It was not immediately clear what effect the summer shutdown would have on GM's engine plant in St. Catharines, Ont., or its transmission plant in Windsor, Ont. Both plants feed parts to U.S. facilities, said Chris Buckley, the president of Canadian Auto Workers Local 222.
"Obviously there will be an impact to the city of St. Catharines and the city of Windsor, but we're not sure what that amounts to as of today," Buckley said.
Laid-off hourly workers will get unemployment benefits and supplemental pay from the company that amounts to most of their base wages.
Salaried workers also will get some income, GM North America president Troy Clarke said.
In a conference call with reporters Thursday, Clarke said the shutdowns are not a sign that GM is headed into bankruptcy protection.
Clarke would not say exactly how many workers would be laid off; nor would he say if any of the factories would be closed for good.
GM has told the government it plans to close five more factories as part of its restructuring plan, and its CEO said additional closures are possible.
The company's U.S. will plants will take the customary two weeks of summer downtime, plus anywhere from one to nine weeks of extra shutdown time.
GM said the extra shutdowns will help reduce its U.S. dealer inventory level to 525,000 vehicles by the end of July. At the end of March, there were approximately 767,000 vehicles in its U.S. dealer stock.
"While sales have been performing at or close to our plan estimates, and dealer inventories have been reduced accordingly, we want to more closely align inventories with even more conservative market assumptions," Clarke said in a statement.
"By reducing our inventories even more aggressively we reduce pressure on GM and our dealers, and set ourselves up well for a clean 2010 model year startup."
Share Tools
Top News Headlines
- Montreal protesters march in peaceful defiance
- The clanging of pots and pans sounded throughout Montreal's downtown core Saturday night and into early Sunday morning, as thousands of protesters marched on in peaceful — but loud — defiance of Bill 78. more »
- Quebec tornadoes cause millions in damage
- Environment Canada confirms that two tornadoes — one of which was classed as a moderate F-1 packing winds of up to 150 km/h — touched down near Montreal Friday night, causing millions of dollars in damage. more »
- Teen struck by lightning in Ottawa dies
- The victim of a Friday lightning strike during a storm in east Ottawa has died, CBC News has learned. more »
- Canada's Ryder Hesjedal has Giro d'Italia title in reach
- Canadian cyclist Ryder Hesjedal remained second overall after finishing sixth Saturday in the gruelling 20th stage of the Giro d'Italia 3:36 behind stage winner Thomas De Gendt. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Quebec tornadoes cause millions in damage
- Montreal protesters march in peaceful defiance
- Woman's remains found in hockey bag on Cape Breton river
- Pope's butler arrested in Vatican leaks scandal
- Everest team unable to bring down Toronto woman's body
- WWE apologizes to Brazil over Canadian's flag stomp
- What a Greek euro exit could mean for Canada

