GM Plant shutdown's for 9 weeks in the states
Discussion
NEW YORK (CNNMoney.com) -- General Motors -- facing a deadline to restructure its beleaguered operations -- will shut down 13 of its 20 North American plants for several weeks this summer as the carmaker tries allow its dealers to sell down overstuffed inventories.
The shutdowns will reduce GM's planned North American output by 190,000 units.
"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," said Troy Clarke, GM (GM, Fortune 500) North America president, in a company statement.
Currently, GM has about 767,000 vehicles in U.S. dealer stock, the carmaker said. While that's 12% lower than the inventory last year, GM sales are about half what they were last year at this time.
0:00 /2:43Easier credit aids AutoNation
GM plants ordinarily close for two weeks in the early summer. These weeks will be added to that. The closures will be staggered and will vary in length.
GM's Arlington, Texas, plant, which manufactures the Chevrolet Tahoe and GMC Yukon SUV, will be closed for eight additional weeks, as will the Flint, Mich., plant that makes GM's full-size pickups. GM's Fort Wayne, Ind., truck plant will close for nine additional weeks.
Other plants will be closed for one to four additional weeks.
The shutdown is also intended to help GM prepare for potential supply disruptions caused by problems at bankrupt auto parts supplier Delphi. GM said in the announcement that it has proposed solutions that would help Delphi "ensure GM's source of supply under fair and reasonable terms."
Delphi's lenders have rejected those terms, GM said in its announcement. That sets the stage for potential supply disruptions.
During a conference call with reporters, Clarke declined to detail GM's proposals for Delphi.
Clarke would also not say how many employees will be affected by the plant shutdowns. Union workers at these plants will continue to receive full pay through a combination of state unemployment benefits and support from GM.
Pay support is also available for salaried employees affected by the shutdowns, Clarke said.
Some plants will be adding production at the same time, however. GM's Lansing Delta Township plant in Michigan, which makes popular crossover SUVs, will continue to operate during the usual two-week shutdown period.
The Fairfax, Kan., plant, which builds the popular Chevrolet Malibu, will operate during the second week of the two-week shutdown period.
GM has received $13.4 billion in federal loans and could receive an additional $5 billion before May 30. By that date, President Obama has said GM must significantly restructure in order to be eligible for further financial aid.
The shutdowns will reduce GM's planned North American output by 190,000 units.
"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," said Troy Clarke, GM (GM, Fortune 500) North America president, in a company statement.
Currently, GM has about 767,000 vehicles in U.S. dealer stock, the carmaker said. While that's 12% lower than the inventory last year, GM sales are about half what they were last year at this time.
0:00 /2:43Easier credit aids AutoNation
GM plants ordinarily close for two weeks in the early summer. These weeks will be added to that. The closures will be staggered and will vary in length.
GM's Arlington, Texas, plant, which manufactures the Chevrolet Tahoe and GMC Yukon SUV, will be closed for eight additional weeks, as will the Flint, Mich., plant that makes GM's full-size pickups. GM's Fort Wayne, Ind., truck plant will close for nine additional weeks.
Other plants will be closed for one to four additional weeks.
The shutdown is also intended to help GM prepare for potential supply disruptions caused by problems at bankrupt auto parts supplier Delphi. GM said in the announcement that it has proposed solutions that would help Delphi "ensure GM's source of supply under fair and reasonable terms."
Delphi's lenders have rejected those terms, GM said in its announcement. That sets the stage for potential supply disruptions.
During a conference call with reporters, Clarke declined to detail GM's proposals for Delphi.
Clarke would also not say how many employees will be affected by the plant shutdowns. Union workers at these plants will continue to receive full pay through a combination of state unemployment benefits and support from GM.
Pay support is also available for salaried employees affected by the shutdowns, Clarke said.
Some plants will be adding production at the same time, however. GM's Lansing Delta Township plant in Michigan, which makes popular crossover SUVs, will continue to operate during the usual two-week shutdown period.
The Fairfax, Kan., plant, which builds the popular Chevrolet Malibu, will operate during the second week of the two-week shutdown period.
GM has received $13.4 billion in federal loans and could receive an additional $5 billion before May 30. By that date, President Obama has said GM must significantly restructure in order to be eligible for further financial aid.
Who would want to buy it right now?
IMO they'll keep producing Corvettes for as long as the car remains profitable, which I guess means as long as people customers keep buying the cars. But I imagine the development budget will be slashed leaving the basic C5/C6 structure to soldier on. Future engine range may depend on what's available from elsewhere in GM if and when the LS reaches the end of the road.
IMO they'll keep producing Corvettes for as long as the car remains profitable, which I guess means as long as people customers keep buying the cars. But I imagine the development budget will be slashed leaving the basic C5/C6 structure to soldier on. Future engine range may depend on what's available from elsewhere in GM if and when the LS reaches the end of the road.
Someone who needs a brand for a low weight well engineered car with a fantastic heritage and loyal following, but at a price point below the rest of their range. Someone who has played at lower cost vehicles but risks diluting their own brand if they do it wrong, someone who could do with a US manufacturing base and can invest in making Corvette global.
Porsche or Ferrari. Only problem is that they'd screw it up and the C7 would be a euro-fighter.
Porsche or Ferrari. Only problem is that they'd screw it up and the C7 would be a euro-fighter.
The future of the Chevrolet Corvette is secure, General Motors CEO Fritz Henderson says, even has GM dramatically slashes its size and costs. (Report from Corvette Action Centre)
In an exclusive interview with AutoWeek, Henderson says that not only is the Corvette's current platform undergoing continual development, but the future seventh-generation car, dubbed C7, is also on track.
He would not specify when the C7 Vette would hit showrooms.
Henderson was bullish on Corvette. Not only is he a Corvette enthusiast who drives one, he knows that it contributes to the company's bottom line.
According to GM's top man, "Corvette pays its rent."
The current sixth-generation C6 Corvette has been in production since 2005. The C6 platform used major components from the C5 fifth-generation Corvette, but with substantial upgrades.
AutoWeek reported in October that work on the C7 Vette had been put on an indefinite hold as GM scrambled to cut costs. The talk then was that the C6 platform could be as old as 12 years before the C7 was ready to go.
In an exclusive interview with AutoWeek, Henderson says that not only is the Corvette's current platform undergoing continual development, but the future seventh-generation car, dubbed C7, is also on track.
He would not specify when the C7 Vette would hit showrooms.
Henderson was bullish on Corvette. Not only is he a Corvette enthusiast who drives one, he knows that it contributes to the company's bottom line.
According to GM's top man, "Corvette pays its rent."
The current sixth-generation C6 Corvette has been in production since 2005. The C6 platform used major components from the C5 fifth-generation Corvette, but with substantial upgrades.
AutoWeek reported in October that work on the C7 Vette had been put on an indefinite hold as GM scrambled to cut costs. The talk then was that the C6 platform could be as old as 12 years before the C7 was ready to go.
Yup, will be there unless it's p155ing with rain! Forecast looks reasonable at present...
Just back from a long weekend in Holland for the Dutch Spring Run. We had a really good time with a great mix of people and cars. Loads of pictures in the General Gassing thread linked below - see page 12 and later,
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Just back from a long weekend in Holland for the Dutch Spring Run. We had a really good time with a great mix of people and cars. Loads of pictures in the General Gassing thread linked below - see page 12 and later,
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
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