GM Pulls Ahead U.S. Plant Closures; Reaffirms Intent to Build Future Small Car in U.S.

The FINANCIAL — General Motors Corp. (NYSE: GM) on June 1 announced details of its accelerated manufacturing plan to improve capacity utilization and flexibility for the New GM. GM also reaffirmed it will build a small car at one of its U.S. assembly plants on standby capacity status.

"The manufacturing plan reduces GM’s total number of assembly, powertrain and stamping facilities in the U.S. from 47 in 2008 to 34 by the end of 2010 and 33 by 2012. These totals reflect GM’s recently announced plans to build a future small car in the U.S. Under this plan, the New GM will achieve full capacity utilization of its assembly operations in 2011, two years ahead of what was scheduled in its Feb. 17 viability plan submission. This will result in lower fixed costs per vehicle sold, and lower and more efficient capital investment," GM informs.

The New GM, under agreement with the U.S. Treasury, will consist of GM’s strongest operations and brands from around the world, resulting in substantially less debt and lower operating costs than GM historically has carried.

“Our manufacturing operations, which already are among the most productive in the industry, will emerge even leaner, stronger and more flexible, as part of the New GM, ” said Gary Cowger Group Vice President of GM Global Manufacturing and Labor Relations. “Flexible manufacturing enables us to quickly respond to consumer preferences and changing market conditions.”

GM’s Service and Parts Operations (SPO) announced today that it will cease operations at three Parts Distribution Centers in Boston; Columbus, Ohio; and Jacksonville, Fla. – by Dec. 31, 2009.

“As GM strengthens its aftersales business, we’re aggressively pursuing strategies that allow us to continue fast parts delivery to our dealers and distributors, and improve our warehouse capacity utilization,” said Kevin W. Williams, GMNA Vice President and General Manager, Service and Parts Operations.

Additionally, GM will build a future small car in the United States utilizing a UAW-GM assembly plant on standby capacity status, with major metal stampings supported from a UAW-GM U.S. stamping plant also on standby capacity. This new small car will play a vital role in GM’s plans to improve the fuel efficiency of its vehicle fleet. Small cars represent one of the fastest growing segments in both the U.S. and around the world. The re-tooled assembly plant will be capable of building 160,000 cars annually. Selection of the site will be determined in the future.