As Many As 14 GM Plants Slated For Closure
General Motors has yet to file for protection under the U.S. bankruptcy code, Chapter 11, but that step is basically a foregone conclusion. This coming Monday is June 1st, the final date that the federal government has given GM to right its listing ship or otherwise face bankruptcy.
As a brand, Chevrolet should still be healthy when GM emerges from bankruptcy. What isn't known is how some of GM's factories will fare with as many as 14 expected to shut down by the end of 2010.
Along with the expected bankruptcy filing, General Motors is expected to announce as many as fourteen plant closings which would be completed by the end of 2010. According to the St. Louis Business Journal, four vehicle assembly plants, along with parts stamping, engine and transmission factories, will be closed down.
Tens Of Billions Of Dollars Of Aid Money
General Motors has been in a financial free fall since last September when the markets tanked and has lost approximately $90 billion since 2004. At one point the automaker was losing as much as $100 million per day, requiring the federal government to continue to extend a lifeline of cash each month. When all is said and done, the U.S. government could end up shelling out as much as $160 billion to keep GM afloat with tens of billions of dollars of taxpayer money “forgiven” in the process.
As of this writing, union workers are wondering which plants will be cut, moves which will likely mean job losses for affected rank and file members. Certain plants seem to be safe, but in this environment no one is confident that their plant will survive unscathed or even that GM will emerge healthy on the other side of bankruptcy.
Chrysler To Emerge From Bankruptcy
In related news, Chrysler is expected to emerge from bankruptcy within the next few days with its assets sold to an automotive group led by Fiat SpA. About 800 Chrysler dealers will be shut down as soon as June 9th with a similar fate awaiting more than 1100 GM dealers who have been told that their franchises will expire at the end of October 2010.
See Also — Opel Astra: Brother To The Chevy Cruze
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