GM announces massive cuts
General Motors Corp., the world’s largest automaker and the biggest publicly traded company in Michigan, on Monday said that it would close 12 facilities and eliminate at least 30,000 jobs in an attempt to return to profitability.
The company also said it will undertake a variety of other cost-cutting initiatives, such as reducing operations at nine manufacturing sites.
The moves come after the company’s losses, especially in GM’s North American automotive operations, continued mounting into the billions of dollars.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Chairman and CEO Rick Wagoner said. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible.
The following six assembly plant sites will be affected in the years indicated:
* Oklahoma City, Okla., will cease production in early 2006.
* Lansing, Mich., Craft Centre will cease production in mid-2006.
* Spring Hill, Tenn., Plant/Line No. 1, will cease production at the end of 2006.
* Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008.
* The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
* The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.
Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include:
* The Lansing, Mich., Metal Center will cease production in 2006.
* The Pittsburgh, Pa., Metal Center will cease production in 2007.
* The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
* The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement.
* St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
* The Flint North 3800 engine facility ("Factory 36") will cease production in 2008.