GM to temporarily close 20 plants to slash output

[kaydee457 13]

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NEW YORK – General Motors Corp. said Friday it will temporarily close 20 factories across North America and make sweeping cuts to its vehicle production as it tries to adjust to dramatically weaker automobile demand.

GM said it will cut 250,000 vehicles from its production schedule for the first quarter of 2009, which includes a cut of 60,000 vehicles announced last week. Normal production would be around 750,000 cars and trucks for the quarter, spokesman Tony Sapienza said.

Many plants will be shut down for the whole month of January, he said, and all told, the factories will be closed for 30 percent of the quarter.

"We're adjusting pretty dramatically," spokesman Chris Lee said.

The move affects most of GM's plants in the U.S., Canada and Mexico. During the shutdowns, employees will be temporarily laid off and can apply to receive a portion of their normal pay from the company. They can also apply for state unemployment benefits, Lee said.

GM and nearly all automakers who sell in the U.S. are mired in the worst sales slump in 26 years. GM reported its sales in the U.S. plunged 41 percent in November and are down 22 percent for the first 11 months of the year compared with the same period last year.

Cash-strapped GM is seeking government loans to stay in operation beyond the end of the year. The White House said Friday it may tap into its $700 billion Wall Street bailout fund to help GM and Chrysler stay in business after the Senate blocked a measure to provide $14 billion in immediate loans.

The measure failed in dramatic fashion late Thursday after Senate Republicans balked at passing the bill without more wage and benefit concessions from autoworkers.

Lee said Friday's production cuts are unrelated to the rescue's failure and had already been planned.

The entire auto industry has been making massive production cuts recently as it adjusts to the reality of lower automobile demand. Earlier Friday, Honda Motor Co. said it was cutting production in North America by 119,000 vehicles for its fiscal year ending March 31.

That brings Honda's expected production for its fiscal year to 1.3 million units, a spokesman said.

Auto demand in the U.S., and increasingly around the world, has been hobbled due to the declining economy and the credit squeeze, which has made it more difficult and more costly for some buyers to obtain financing. Industrywide vehicle sales crumbled 37 percent in November, with every major automaker posting giant sales declines.

Lee said GM's production cuts will be achieved by adding "down weeks" to the schedules at the affected plants. During down weeks, which can be staggered during a given period of time or can come several at once, the plant will not produce anything and employees will be temporary laid off.

"We look at it on a plant-by-plant basis and make decisions regarding their production schedule in terms of market demand, so it's not a blanket ... we look at it plant by plant and make those decisions," Lee said.

source

[spookyturtle 9,466]

This should maket the anti American GM haters happy.

[Ban Hammer 14,638]

This should maket the anti American GM haters happy.

[William33 110]

I am not a GM hater, I just dislike the arrogant pr1ck that runs this derailed company. Further, I don't care for the UAW, because unions generally bury companies in this day and age.

Either way, I will never buy a vehicle that craps out before the warranty expires. That fate is not yours, if you buy an: Acura, Honda, Lexus, Toyota, Infiniti or Nissan....

[spookyturtle 9,466]

I am not a GM hater, I just dislike the arrogant pr1ck that runs this derailed company. Further, I don't care for the UAW, because unions generally bury companies in this day and age.

Either way, I will never buy a vehicle that craps out before the warranty expires. That fate is not yours, if you buy an: Acura, Honda, Lexus, Toyota, Infiniti or Nissan....

Right, Jap cars never break down and an American car has never made it past the warranty period.

[William33 110]

I am not a GM hater, I just dislike the arrogant pr1ck that runs this derailed company. Further, I don't care for the UAW, because unions generally bury companies in this day and age.

Either way, I will never buy a vehicle that craps out before the warranty expires. That fate is not yours, if you buy an: Acura, Honda, Lexus, Toyota, Infiniti or Nissan....

Right, Jap cars never break down and an American car has never made it past the warranty period.

Opinions vary....I have bought many new vehicles over the last 25 years, and used to be patriotic about purchases until 10 years ago. Given the repair issues experienced with new domestic vehicles and zero with foreign, my mind is made up....

You are entitled to your opinion and choice in vehicles. I will buy Japanese every time. The fact that I owned Japanese cars, while living in Japan accelerated this belief. No repair costs...

[wayno 10]

I've had broncos in the past that were literally abused. Occasional problems? Yes. but they got me where I needed to go. Had an 80 caprice I bought for $400 bucks some years ago pushing 200,000 miles. My temp car lasted 2 years before I finally got rid of it and got a jeep. (missed my 4X's.) Have an Isuzu sitting in Costa Rica that is a pain. Quality on that is no better then the fords I've owned or my dodge. Would never buy a jap vehicle again. Basically not my style. I like full size vehicles and always will. Also not gonna listen to the media or people who push foreign cars they've never ridden in because it's trendy to hate american vehicles. Just my opinion but a lot of people feel the same way.

[William33 110]

I've had broncos in the past that were literally abused. Occasional problems? Yes. but they got me where I needed to go. Had an 80 caprice I bought for $400 bucks some years ago pushing 200,000 miles. My temp car lasted 2 years before I finally got rid of it and got a jeep. (missed my 4X's.) Have an Isuzu sitting in Costa Rica that is a pain. Quality on that is no better then the fords I've owned or my dodge. Would never buy a jap vehicle again. Basically not my style. I like full size vehicles and always will. Also not gonna listen to the media or people who push foreign cars they've never ridden in because it's trendy to hate american vehicles. Just my opinion but a lot of people feel the same way.

The media is noise to me, I listen to my own instinct.

Have you driven the Acura TL-S? This vehicle may change your mind.. I was sold on reliable vehicles long ago, but this car rocks!!

[spookyturtle 9,466]

I had a 94 Chevy K Blazer that I drove for 192,000 miles before it was totaled. No trouble at all, just scheduled maintanence, brakes and a few sets of tires. It still ran like a top and used no oil between changes. I had a Ford F-250 that topped 160,000 miles before I sold it. Another reliable vehicle. I don't think that my experience is out of the ordinary for American vehicles.

[wayno 10]

I had a 94 Chevy K Blazer that I drove for 192,000 miles before it was totaled. No trouble at all, just scheduled maintanence, brakes and a few sets of tires. It still ran like a top and used no oil between changes. I had a Ford F-250 that topped 160,000 miles before I sold it. Another reliable vehicle. I don't think that my experience is out of the ordinary for American vehicles.

Not at all. Around here you see a lot more pre 95 American vehicles then foreign cars.

[William33 110]

I had a 94 Chevy K Blazer that I drove for 192,000 miles before it was totaled. No trouble at all, just scheduled maintanence, brakes and a few sets of tires. It still ran like a top and used no oil between changes. I had a Ford F-250 that topped 160,000 miles before I sold it. Another reliable vehicle. I don't think that my experience is out of the ordinary for American vehicles.

I have owned several American vehicles, mostly Fords, that had trouble just before the warranty ended. Yeah I know, should have bought a GM. I have heard likewise stories about GM and Chrysler.

To each his/her own.. End of story. Your money, your choice....

Edit: for clarity.

Edited December 13, 2008 by William33

[spookyturtle 9,466]

I had a 94 Chevy K Blazer that I drove for 192,000 miles before it was totaled. No trouble at all, just scheduled maintanence, brakes and a few sets of tires. It still ran like a top and used no oil between changes. I had a Ford F-250 that topped 160,000 miles before I sold it. Another reliable vehicle. I don't think that my experience is out of the ordinary for American vehicles.

I have owned several American vehicles, mostly Fords, that had trouble just before the warranty ended. Yeah I know, should have bought a GM. I have heard likewise stories about GM and Chrysler.

To each his/her own.. End of story. Your money, your choice....

Edit: for clarity.

Were the problems fixed under warranty? If so, did they return after the warranty expired? What kind of trouble did you have?

[Donna A 4]

well as far as i know now i will be working right up until the holiday shutdown which is dec. 23. rumor has it they will start empting the line a week early but still just in rumor stage now. then we all have to come back feb 2 for a short meeting and then the permanat layoff begins.

[NickD 203]

So far, no one is blaming the oil speculators for our current financial disaster, same thing happened back in 1974, the price didn't inch up, but shot up instantaneously catching just about everyone off guard. And why are domestic energy sources going up with it? Somebody has made a huge amount of money from this, but it's kept very quiet, not even the media is talking about it.

Now there is fear in the market place for buying anything expensive, so even with the much lower price on gas, sales have not picked up. People no longer trust the government that should be at least investigating these drastic price increases. Do you blame them?

[rebeccajo 14]

well as far as i know now i will be working right up until the holiday shutdown which is dec. 23. rumor has it they will start empting the line a week early but still just in rumor stage now. then we all have to come back feb 2 for a short meeting and then the permanat layoff begins.

Sorry to hear this , Donna.