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GM North America to Undergo Major Capacity Reduction

GM   21 Nov 2005 13:52 GMTPage rating:


General Motors will undergo a wide-ranging restructuring of its manufacturing operations in the United States and Canada as part of its comprehensive four-point plan to return the company to profitability and long-term growth, GM Chairman and CEO Rick Wagoner announced today.

GM's next step in its North American turnaround plan addresses its ongoing capacity utilization, a major component of reducing structural cost. A total of nine assembly, stamping and powertrain facilities and three Service and Parts Operations facilities will cease operations.

The additional actions will reduce GMNA assembly capacity by about 1 million units by the end of 2008, in addition to the previously implemented reduction of 1 million units between 2002 and 2005. A total of 30,000 manufacturing positions will be eliminated from 2005 through 2008.

The following six assembly plant sites will be affected in the years indicated:

   * Oklahoma City, Okla., will cease production in early 2006.
   * Lansing, Mich., Craft Centre will cease production in mid-2006.
   * Spring Hill, Tenn., Plant/Line No. 1, will cease production at the end of 2006.
   * Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008.
   * The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
   * The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.

Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include:

   * The Lansing, Mich., Metal Center will cease production in 2006.
   * The Pittsburgh, Pa., Metal Center will cease production in 2007.
   * The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
   * The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement.
   * St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
   * The Flint, Mich., North 3800 engine facility ("Factory 36") will cease production in 2008.


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