Saturday, April 25, 2009

GM to Idle 13 Plants This Summer

You do realize what this will do to our unemployment rate, when you factor in suppliers that will likely shutter/layoff as well. Not to mention the state budget, $800 million or so in the hole as we speak and looking at $1.4B for 2010 (and climbing).

And we haven't even factored in Chrysler yet.

This is bad. Real bad.

General Motors Corp. is temporarily idling 13 plants in the U.S. and Mexico this summer, including several in Michigan, and cutting 190,000 vehicles to help shave surplus inventories and align production with demand.

Troy Clarke, president of GM North America, was to outline the production cuts during a 3 p.m. news conference, but the idlings range from one to nine weeks.

The struggling automaker, which was originally expected to detail the production cuts Friday, also is making the cuts because negotiations with parts supplier Delphi Corp. to end a prolonged bankruptcy case has been unsuccessful and GM believes the supplier or its lenders could force the automaker into an "uncontrolled shutdown."


Go read the DNews piece for the list of plants and length of shutdown - it varies.

Just a sample of what I'm talking about...

Layoffs in the heat of the growing recession continue to hurt West Michigan, including the accelerated shutdown of General Motor Corp.'s Wyoming stamping plant, now set for June 26.

That facility is now down to a single shift now, and suppliers and businesses across the area are paring their workforces.


Lansing, we have a problem. This is part of the reason I haven't been harping on the current budget - I get the feeling that the revenue estimating conference in May is going to look like a tidal wave coming at us, and all the partisan sniping is going to be for naught because we are all going to drown anyway.

Someone get that Obama dude on the phone...

Update: KB Hoffman confirms my fears.