GM Pulls Ahead U.S. Plant Closures; Reaffirms Intent to Build Future Small Car in U.S

[Rob]

FOR RELEASE: 2009-06-01


GM Pulls Ahead U.S. Plant Closures; Reaffirms Intent to Build Future Small Car in U.S.

14 U.S. Manufacturing Plants & Three Service and Parts Operations Warehouses Impacted

DETROIT, Mich. -- General Motors Corp. (NYSE: GM) today announced details of its accelerated manufacturing plan to improve capacity utilization and flexibility for the New GM. GM also reaffirmed it will build a small car at one of its U.S. assembly plants on standby capacity status.

The manufacturing plan reduces GM’s total number of assembly, powertrain and stamping facilities in the U.S. from 47 in 2008 to 34 by the end of 2010 and 33 by 2012. These totals reflect GM’s recently announced plans to build a future small car in the U.S. Under this plan, the New GM will achieve full capacity utilization of its assembly operations in 2011, two years ahead of what was scheduled in its Feb. 17 viability plan submission. This will result in lower fixed costs per vehicle sold, and lower and more efficient capital investment.

The New GM, under agreement with the U.S. Treasury, will consist of GM’s strongest operations and brands from around the world, resulting in substantially less debt and lower operating costs than GM historically has carried.

“Our manufacturing operations, which already are among the most productive in the industry, will emerge even leaner, stronger and more flexible, as part of the New GM, ” said Gary Cowger Group Vice President of GM Global Manufacturing and Labor Relations. “Flexible manufacturing enables us to quickly respond to consumer preferences and changing market conditions.”

GM’s Service and Parts Operations (SPO) announced today that it will cease operations at three Parts Distribution Centers in Boston; Columbus, Ohio; and Jacksonville, Fla. – by Dec. 31, 2009.

“As GM strengthens its aftersales business, we’re aggressively pursuing strategies that allow us to continue fast parts delivery to our dealers and distributors, and improve our warehouse capacity utilization,” said Kevin W. Williams, GMNA Vice President and General Manager, Service and Parts Operations.

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 U.S. 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. Small cars represent one of the fastest growing segments in both the U.S. and around the world. The re-tooled assembly plant will be capable of building 160,000 cars annually. Selection of the site will be determined in the future.

The list of impacted U.S. GM plants follows:

June 1, 2009 U.S. GM Manufacturing Optimization Plan Actions

Plant	Status / Timing (date listed or sooner depending on market demand)
Assembly
Orion, Mich.	Standby Capacity - September 2009
Pontiac, Mich.	Close - October 2009
Spring Hill, Tenn.	Standby Capacity - November 2009
Wilmington, Del.	Close - July 2009
Stamping
Grand Rapids, Mich.	Close - June 2009 (previously announced)
Indianapolis, Ind.	Close - December 2011
Mansfield, Ohio	Close - June 2010
Pontiac, Mich.	Standby Capacity - December 2010
Powertrain
Livonia Engine, Mich.	Close - June 2010
Flint North Components, Mich.	Close - December 2010
Willow Run Site, Mich.	Close - December 2010
Parma Components, Ohio	Close - December 2010
Fredericksburg Components, Virg.	Close - December 2010
Massena Castings, N.Y.	Closed - May 1, 2009 (previously announced)
Service & Parts Operations (SPO) Warehousing & Parts Distribution Centers
Boston, Mass.	Close – December 31, 2009
Jacksonville, Fla.	Close – December 31, 2009
Columbus, Ohio	Close – December 31, 2009

General Motors Corp. (NYSE: GM), one of the world’s largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 234,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Genuine GM Parts are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service & Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain.

Assembly, stamping and powertrain fact sheets are available at media.gm.com/manufacturing.

CONTACT(S):
Lynda Messina
Manufacturing and Labor Communications
586-986-9530
313-378-8690 - cell
Lynda.Messina@gm.com

Chris Lee
Manufacturing and Labor Communications
586-986-9520
586-899-3021 - cell
Chris.T.Lee@gm.com

Chris Lee
Manufacturing and Labor Communications
586-986-9520
586-899-3021 - cell
Chris.T.Lee@gm.com

[6 Shooter]

Hopefully GM can evolve into a Lean Mean Automotive Machine!

Later . . . . . .
6 Shooter

[JBsC5]

Thanks for the heads up.

JB

[lnirenberg]

I guess what I don't understand is why they are saving GMC, which makes rebadged Chevy trucks, and Buick, which is hot in China and should survive as a nameplate there but whose US customer base is fleeing the brand for their eternal resting place 6 ft under and killing Saturn which makes small cars and downsizing Pontiac after they started to make some decent cars and attracts the younger demographic that survival requires. They could jump right into the high mileage mix by building clean small diesel engines in the US like the one's they use in the rest of the world. The new turbo direct injection clean diesels are torque monsters. I also heard that they are killing the new 4500 duramax diesel which was the most exciting GM motor since they developed the LS architecture--reportedly produced mid 500 ft/lbs factory stock from 4.5 liters and was the same outward size as a modern small block. A hot rodders wet dream! Why has no one asked my opinion?

[jcruz]

Yeah -- building small, very expensive cars that nobody wants -- yeah, that's the ticket.