GM Plans to Close Plants Temporarily

2009-04-23 18:20:36 (GMT) (WiredPRNews.com - Business, News)

The automaker will reportedly close most of its plants in the United States for several weeks.

Wired PR News – General Motors is reportedly planning to temporarily close most of its plants in the US during the summer. As reported by the Associated Press (AP), the automaker giant will close the plants for up to nine weeks due to declining sales and an increase in inventories of a number of vehicles that are not being sold, according to sources related to the company.

As noted in the report, the temporary shut down could lead to the layoffs of thousands of GM workers. Jim Gillette, CSM Worldwide financial services director, is quoted as stating of the impact General Motors’ situation could have on suppliers, “It’s one of those things we’ve been dreading for a long time… It’s as bad as its ever been.”

General Motors is currently facing a government imposed restructuring deadline for June 1. As noted in the report, the company’s CEO has stated that failure to meet the deadline may result in its filing for bankruptcy.

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