GM to Shut Most U.S. Plants for Up to 9 Weeks

April 23rd, 2009

Via: AFP:

Troubled US auto giant General Motors plans to close some of its US plants for up to nine weeks this summer in a cost cutting measure to counter slumping sales, the Detroit News reported Wednesday.

The embattled auto firm, which has been given 13.4 billion dollars by the US government, is set to shutter the plants as part of a bid to reduce production by around 170,000 vehicles this year.

An announcement is expected Friday the paper said.

GM spokesman Chris Lee told AFP the company would first announce any closures to staff, but refused to say whether it had plans to do so, describing the reports as “speculative.”

“We have made not made any down-working announcements,” he said.

Auto workers union representatives were not immediately available for comment.

The news come after the US government on Tuesday agreed to lend a further five billion dollars to GM as it works on a long-term viability plan.

The firm has received 13.4 billion dollars in public aid in an effort to stave off collapse of the sector, which employs thousands.

President Barack Obama’s administration has given GM until June 1 to present an aggressive restructuring plan, after the government rejected its previous proposals in late March.

The firm has said it wants to avoid filing for bankruptcy protection, but is preparing for it nevertheless.

The auto makers has also announced it will slash 1,600 white collar jobs by May 1.

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