GM To Shut Most U.S. Plants Up To 9 Weeks

(CBS/AP)  General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, two people briefed on the plan said Wednesday.

The exact dates of the closures were not known, but both people said they will occur around the normal two-week shutdown in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.

GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.

The automaker is living on $13.4 billion in government loans and faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn't meet the deadline, the company's CEO has said it will enter Chapter 11 bankruptcy protection.

United Auto Workers officials at several factories said they have meetings scheduled Thursday and Friday with plant managers and GM human resource officials to discuss production changes.

The automaker's sales were down 49 percent in the first quarter compared with the same period last year, and GM had a 123-day supply of cars and trucks at the end of March, according to Ward's AutoInfoBank. GM already has more than a six-month supply of several models.

On Monday, GM announced about 1,600 white-collar workers would lose their jobs as the troubled automaker accelerates cost cuts in order to qualify for more government aid.

GM North America President Troy Clarke said Monday in an e-mail to employees that the layoffs are needed to ensure the company's long-term viability.

"In these unprecedented times, GM is reinventing every aspect of our business, including our organizational size and structure, to create a lean and agile company," Clarke wrote in the e-mail obtained by The Associated Press.

[toldyouso29]

Laid off people, don't buy cars. One of the most lucrative markets for the American automaker was its own workers and the workers of other companies that supported the auto industry--who often bought new vehicles every year. Then, US automakers had the bright idea to outsource and move jobs overseas--thus hamstringing and then killing a large part of their own market. Talk about shooting themselves in the foot.

No country can survive without a product--servicing others is not a product--it is prostitution, and is totally dependent on the need/desires and dependency of the johns. "America, the service industry, where our biggest impetus for our economy is ...spending" Pretty sad commentary.

[growlll]

What bit the Python twit in the rear? A stupid bug?

[hambonehd]

pythoncharly..

You are a true idiot..!!! Or you are on some really good drugs.

no, probably both...

[pw08-2009]

No one is fooled by these headlines anymore because nothing has changed. These workers will still get paid...It's a funny as hearing that there will be layoffs in The L.A. unified school district or L.A. city government, because EVERYONE knows neither will actually happen...They eliminate unfilled positions and cal it a job loss or layoff...really really funny - yet sad and we are supposed to believe they are real.

[DoubleHappiness88]

GM exemplifies results, when BEAN COUNTERS are allowed to run a company.

[pw08-2009]

The GM workers must be in heaven right now, because that's nine weeks that they'll get paid not to work! No one else enjoys that kind of benefit, do they?

[swin5]

What does Government do well?
Posted by OddWon2 at 7:39 AM : Apr 23, 2009

Spend your money, go into debt, and tax you.

[astrogg]

GOOD BYE G.M. / AUTO UNION,sooner or later they will re-open as a totaly different auto company that doesn't have the managers who make millions, and do nothing, they should take everyone of them and string 'em up. They are sitting back and waiting for June 1st, so they can claim chapetr 11 and count their money that they will be walking away with. Now who's the joke on?

[whatever567]

IF GM Really closes for 9 weeks or whatever
the problem is this they are still paying the workers so what savings is it of
they think we are so stupid we believe this stuff
if yu pay the workers still because that is part of the union contract the state has to pay the unemployment but GM makes up the difference and the employees still get all their $$
so i dont want to hear oh woe is me from the GM employees that they are unemployed for 9 weeks, they also dont have to legally look for a job like other unemployed people do.
most of them draw all that money and do side jobs on the side and make extra CAsh

the tax payer gets it in the end
we pay their salary they dont have to really work and we get to pay way too much for a car that falls apart quickly

GM is just playing a game because the government threatened them

i dont see Chrylser cleaning up their act either

i am a former union member with SWBT and i understand we need unions but at some point the union is too much

[mycommentspg]

Wake up people, Democrats or Republicans, it doesn't matter, Congress is made up of both and has been asleep at the wheel and Obama came from Congress. mycommentspage.blogspot.com