Struggles at General Motors: GM may close more factories [View All]

[Bozita]

http://www.detnews.com/2005/autosinsider/0504/26/A01-162446.htm

Struggles at General Motors

GM may close more factories
Despite a decade of cutbacks, analysts say sluggish sales point to more job losses.

By Ed Garsten / The Detroit News



General Motors Corp., faced with shrinking North American market share and evaporating profits, may have no choice but to close more plants and lay off thousands more workers.

The automaker is trying to wring cost out of its money-losing North American business, which is saddled excess manufacturing capacity.

In the past 16 months, GM has been forced to shut down various North American assembly plants for 121 weeks because of slow sales and bloated inventories, according to an analysis by The Detroit News.

This week alone, GM temporarily laid off 7,000 workers, joining an estimated 8,500 workers already idled due previous plant closings or permanent production cuts. By contract, GM must pay the workers 95 percent of their pay.

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