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GM to cut 14 plants by 2012, reaffirming to build small car in US

(Xinhua)
Updated: 2009-06-02 00:28

DETROIT -- General Motors Corp. announced on Monday that it will close or idle 14 plants in more than two years, just several hours after the troubled carmaker filed for bankruptcy in New York. GM also reaffirmed it will build a small car at one of its US assembly plants as it announced on last Friday.

The manufacturing plan reduces GM's total number of assembly, powertrain and stamping facilities in the US from 47 to 33 by 2012.

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GM indicates the new company emerging from the bankruptcy in about 90 days will achieve full capacity utilization of its assembly operations in 2011, two years ahead of what was scheduled in its February 17 viability plan submission. This will result in lower fixed costs and lower and more efficient capital investment.

The moves are part of GM's restructuring plan, which will cut 21,000 US factory jobs by the end of 2011.

Additionally, GM will build a future small car in the United States, utilizing a UAW-GM assembly plant on standby capacity status, with major metal stampings supported from a UAW-GM US stamping plant also on standby capacity.

This new small car will play a vital role in GM's plans to improve the fuel efficiency of its vehicle fleet. The re-tooled assembly plant will be capable of building 160,000 cars annually. Selection of the site will be determined in the future.