GM to shut many US plants up to 9 weeks: Report
GM is living on $13.4 bn in US govt loans and faces a June 1 deadline to restructure or seek bankruptcy protection. GM's all-time top sellers | Key dates in GM's history
By Agencies |
DETROIT: Two people briefed on the plan say General Motors Corp. will close most of its US factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles.
The people did not know exactly when the shutdowns would occur, but both say they will include the normal two-week closure in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.
GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.
GM is living on $13.4 billion in government loans and faces a June 1 deadline to restructure or seek bankruptcy protection.
Earlier in the day GM said it is unlikely to make a $1 billion debt payment due June 1 because it expects to be in the process of restructuring its debt through a voluntary exchange or bankruptcy court by that point.
GM has been given until June 1 to win sweeping concessions from creditors, including bondholders and the United Auto Workers union, under the terms of its US government supervised restructuring.
Spokeswoman Renee Rashid-Merem said GM was working to offer a bond exchange that would reduce the $28 billion in debt owed to bondholders. Such an exchange could still be in progress as of June 1, precluding the bond payment, she said.
The people did not know exactly when the shutdowns would occur, but both say they will include the normal two-week closure in July to change from one model year to the next. Neither person wanted to be identified because workers have not been told of the shutdowns.
GM spokesman Chris Lee would not comment other than to say the company notifies employees before making any production cuts public.
GM is living on $13.4 billion in government loans and faces a June 1 deadline to restructure or seek bankruptcy protection.
Earlier in the day GM said it is unlikely to make a $1 billion debt payment due June 1 because it expects to be in the process of restructuring its debt through a voluntary exchange or bankruptcy court by that point.
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GM has been given until June 1 to win sweeping concessions from creditors, including bondholders and the United Auto Workers union, under the terms of its US government supervised restructuring.
Spokeswoman Renee Rashid-Merem said GM was working to offer a bond exchange that would reduce the $28 billion in debt owed to bondholders. Such an exchange could still be in progress as of June 1, precluding the bond payment, she said.
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