Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DETROIT-General Motors plans to close several major plants as part of a massive restructuring plan that will see the automaker eliminate 25,000 manufacturing jobs in the US, about 17% of its domestic workforce.

Outlining plans for GM’s turnaround, chairman and CEO Rick Wagoner would not identify the plants or if or when the automaker would try to divest itself of those properties. David Cole, chairman of the Center for Automotive Research in Ann Arbor, says however that the most likely targets are several older plants. Those include facilities in Janesville, WI; Doraville, GA; Oklahoma City and Pontiac, MI, he says. The Janesville plant was built in 1919 and the Doraville plant was built in 1947. The other two plants were built in the 1970s.

Wagoner says the unidentified plants would be closed throughout the next three years. The United Auto Workers union responded that GM’s ability to make the cuts would depend on worker attrition rates and its contract negotiations with the union. GM’s UAW contract expires in 2007.

“The UAW is not convinced that GM can simply shrink its way out of its current problems. What’s needed is an intense focus on rebuilding GM’s US market share, and the way to get there is by offering the right product mix of vehicles with world-class design and quality,” says UAW vice president Richard Shoemaker, who directs negotiations with GM.

GM already shut a factory in Linden, NJ in April and a factory in Baltimore in May, affecting about 2,000 employees. GM reported a loss of more than $1 billion in the first quarter of 2005.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.