General Motors might close four US based plants
Market sources claim that the Chief Executive of the worldâ€™s largest automaker General Motors Rick Wagoner is due to announce companyâ€™s plan to close around 4 of their United States based car production plants. The announcement can come anytime this week itself and the reports quote a company insider for this information.
The move comes as the GM is looking towards cutting costs and loss making units to go back to profitability as it is finding it hard to compete with the Japanese giants like Honda and Toyota in their home market. Rising fuel prices and falling demands for SUVs has led to drops in sales for GM vehicles, as it had to resort to huge discount offers for bringing in more customers to their showrooms.
General Motors has declined to comment on these market rumors. The company has already made losses of around USD 4 Billion this year itself. And they are due to give details by the end of 2005 of its plan to cut at least 25,000 manufacturing jobs as part of a broader restructuring plan. Rick Wagoner has already committed to a series of plant closures and the elimination of nearly a quarter of GM’s U.S. factory work force through 2008.