Tuesday, June 3, 2008

GM closing plants in US, Canada, and Mexico.

This is from Bloomberg.
Watching TV today I see Buzz Hargrove howling and crying fowl. He says that GM has violated the agreement with the union. This could very well be correct. However, Buzz should note that production is not just being shifted to lower wage Mexico. A Mexican plant and two U.S. plants are also slated to be closed down. GM will try to shed the Hummer as well perhaps.

General Motors to Halt Production at Four Plants, Globe Says
By Sean B. Pasternak
June 3 (Bloomberg) -- General Motors Corp., the world's largest automaker, will probably announce today that it's halting production at its pickup-truck factory in Oshawa, Ontario, cutting about 1,000 jobs, the Globe and Mail reported.
The Detroit-based automaker may also announce at the annual meeting of shareholders that it's closing two U.S. plants in Wisconsin and Ohio, along with a factory in Mexico, the newspaper said, citing unidentified people. The cuts are related to rising gasoline prices and a U.S. housing slowdown, the Globe said.
Spokespeople at GM Canada didn't return phone calls to the newspaper seeking comment, and spokesman Stew Low didn't return a call from Bloomberg News placed before business hours.
To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

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