Wagoner expects the cost cutting plan will help GM reduce spending by approximately $7 billion, critical in a time when its
leading supplier, Delphi, is in bankruptcy protection and other suppliers, and GM itself faces the same potential fate.
The first plant to get the axe in early 2006 will be Oklahoma City, Oklahoma, followed by Lansing Craft Center in Lansing, Michigan that is slated to shut the doors in mid-2006. Lansing's stamping plant will also be closed in 2006, while Pittsburgh's stamping plant will be closed the following year, in 2007. 2008 closures will include the Doraville, Georgia minivan plant, the Oshawa, Ontario No. 2 plant, the St. Catharines, Ontario Street West powertrain
parts plant, and the Flint North plant in Flint, Mich., home to GM's 3.8-liter V6.
Plants that will see reduced volume and therefore a reduction in workforce are Oshawa, Ontario car plant No. 1's third shift that will cease to be operational in the middle of next year, Saturn's original Spring Hill, Tennessee plant that will shut down line No. 1 at the end of next year, and Moraine, Ohio's truck plant that will end its third shift sometime in 2006.
Also due for closure in 2006 is a parts distribution center in Portland, Oregon, while a parts distribution center in St. Louis, Missouri will be converted to a crash parts warehouse.
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| Wagoner expects the cost cutting plan will help GM reduce spending by approximately ($7 billion, allowing the automaker to invest in new products. (Photo: General Motors) |
The first plant to get the axe in early 2006 will be Oklahoma City, Oklahoma, followed by Lansing Craft Center in Lansing, Michigan that is slated to shut the doors in mid-2006. Lansing's stamping plant will also be closed in 2006, while Pittsburgh's stamping plant will be closed the following year, in 2007. 2008 closures will include the Doraville, Georgia minivan plant, the Oshawa, Ontario No. 2 plant, the St. Catharines, Ontario Street West powertrain
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| Saturn's original Spring Hill, Tennessee plant that will shut down line No. 1 at the end of next year. (Photo: Alexandra Straub, American Auto Press) |
Plants that will see reduced volume and therefore a reduction in workforce are Oshawa, Ontario car plant No. 1's third shift that will cease to be operational in the middle of next year, Saturn's original Spring Hill, Tennessee plant that will shut down line No. 1 at the end of next year, and Moraine, Ohio's truck plant that will end its third shift sometime in 2006.
Also due for closure in 2006 is a parts distribution center in Portland, Oregon, while a parts distribution center in St. Louis, Missouri will be converted to a crash parts warehouse.