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GM to temporarily close most U.S. factories for two months

2009-04-22 22:54:08 (GMT) (Caymanmama.com - Automotive Business News)

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General Motors GMT800 car assembly line

General Motors Corp. sources say the struggling automaker will temporarily shut down most of its U.S. plants for up to nine weeks this summer

Portland, Oregon (CaymanMama.com) –The never-ending bad news keeps coming for General Motors Corp. as authorities on the matter have said the struggling automaker will temporarily shut down most of its U.S. plants for up to nine weeks this summer.

GM said this move is to combat low sales and bursting inventories of unsold vehicles.

The exact date that the factories will close is not yet known, but the sources said it will likely occur near the normal two-week shutdown in July to switch from one model year to the next.

GM spokesman Chris Lee would not comment other than to say the automaker will notify employees before formally announcing any production cuts public.

As per the Associated Press, “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.”



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