GM Announces Plant Shutdowns To Reduce Inventories
General Motors (GM.UL) (NYSE:GM) announced that they will be idling 13 North American manufacturing plants in efforts to reduce inventories of their cars and trucks.
The plant shutdowns will be staggered and will vary in duration.
In a company press release, North American GM President Troy Clarke stated, "We're taking aggressive steps to accelerate our inventory initiatives that have worked well since the first of the year. While sales have been performing at or close to our plan estimates, and dealer inventories have been reduced accordingly, we want to more closely align inventories with even more conservative market assumptions. By reducing our inventories even more aggressively we reduce pressure on GM and our dealers, and set ourselves up well for a clean 2010 model year start-up."
He continued, "Our dealers will continue to have plenty of high-quality, fuel-efficient cars, trucks and crossovers at tremendous value for customers. It's still a great time for customers to buy a new GM vehicle."
GM plants that manufacture new product lines won't be affected by the announced shutdowns.
The measure is expected to reduce production of 190,000 new vehicles in the second half of 2009.
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