General Motors Corp. announced that it will cut production over next three months to cut down on inventory of its cars and trucks in an attempt to avoid a shutdown related to the financial problems at Delphi Corp.
The move is expect to reduce production by 190,000 vehicles in the second and third quarters of this year.
The temporary shutdowns are expected at 13 plants across the country, but not at plants that are launching new vehicles, like the Chevy Camaro.
The closures are expected to take place in May, and are expected to last nine to 10 weeks.
GM normally shuts down its plants for two weeks during the summer, to prepare for the new model year. The plants where additional closures are expected are: Arlington, Texas; Bowling Green, Ky.; Detroit-Hamtramck, Mich.; Flint, Mich.; Fort Wayne, Ind.; Lansing, Mich.; Lordstown, Ohio; Pontiac, Mich.; Shreveport, La.; Spring Hill, Tenn.; Wilmington, Del.; Wentzville, Mo.; and Silao, Mexico.
GM is making the production cuts due to slumping sales, but some analysts fear that the temporary closings will lead to a larger sales slump because it will increase fears of a GM bankruptcy.
The plant closings have further implications, because parts suppliers, who are already in financial trouble, would lose revenue because GM will not be buying parts during the shutdown.