Extended shutdowns seen as a way to reduce costs as vehicle surpluses continue to grow.
Several major news outlets are reporting that General Motors is planning extended shutdowns of its U.S. plants this summer. The plants would be idled for as much as nine weeks from mid-May through July.
While it is common practice for plants to idle for a “summer break” during the sunny season, that period has traditionally only been two weeks and not the two months that General Motors is planning.
The move is considered a necessity as the struggling automaker suffered a sales decline of 49 percent in March and currently has a stockpile of vehicles that can last 122 days.
A representative of the United Auto Workers union told the Associated Press that plan managers will be meeting with the union today and tomorrow to discuss production changes and some plants.
There is no word on if the extended shutdowns would apply to GM’s other North American facilities.
[Source: Automotive News]