GM to Save 2 Plants Sentenced to Death

Following the agreement General Motors has reached with the United Auto Workers (UAW), the American automaker will save two factories targeted for closure. According to the terms of the agreement, General Motors will use the two production facilities to build small and compact cars as well as stampings for these particular models.

Autonews notes that one of the assembly plants will produce around 160,000 cars per year, with all of these vehicles initially supposed to be produced in non-US factories. Details on the two facilities are yet to be released but more information is expected this week as GM is calming sitting on the brink of Chapter 11.

General Motors announced in April that it plans to close the doors of 13 production facilities, as part of a broader attempt to reduce costs and cut down production by 190,000 units. Additionally, GM hopes to reduce its inventory from 767,000 vehicles at the end of March to 525,000 units by July.

However, plants which are assembling new or redesigned vehicles (Chevrolet Camaro, Buick LaCrosse, Chevrolet Equinox and Cadillc SRX) will not be affected by these measures, as all of these models are produced by GM's core brands set to remain out there and help the American automaker in its fight for survival.

"We're taking aggressive steps to accelerate our inventory initiatives that have worked well since the first of the year. While sales have been performing at or close to our plan estimates, and dealer inventories have been reduced accordingly, we want to more closely align our inventories with even more conservative market assumptions,"
Troy Clarke, GM North America president said in a statement at that time.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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