Monday, March 23, 2009

General Motors most likely to close Truck, SUV, Pickup Plants first

General Motors Corp.'s latest plan to return to profitability calls for the struggling automaker to close five more plants than it originally expected. The lingering question is which plants will be the first to go.


It's a question GM has not yet answered, but industry experts think overcapacity is likely to claim one of the company's remaining pickup truck factories, as well as powertrain and parts stamping plants in communities that are already among the hardest hit by the auto industry downturn.

Many experts who study automobile manufacturing were reluctant to name specific plants that could be on the chopping block. Some cited fears of a "self-fulfilling prophecy." But a look at what GM is already producing and what is -- or isn't -- selling offers some clues, and analysts say an Ohio plant is among possible candidates for closure.

Haig Stoddard, auto analyst with IHS Global Insight, said truck and SUV plants are more vulnerable, given recent sales trends. GM's assembly plant in Pontiac, Mich. -- one of three U.S. plants that make Chevrolet Silverado and GMC Sierra pickups -- could be a target, Stoffard said.


Read More inside Business Week

No comments:

Post a Comment