This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8015592.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
GM to close factories for weeks | |
(about 21 hours later) | |
General Motors (GM) has said it will temporarily close 13 factories in the US and Mexico as it tries to cut costs and control its stock levels. | General Motors (GM) has said it will temporarily close 13 factories in the US and Mexico as it tries to cut costs and control its stock levels. |
The company said the closures - which would cut production by 190,000 vehicles - would begin in May and end in July. Suppliers will also shut down. | The company said the closures - which would cut production by 190,000 vehicles - would begin in May and end in July. Suppliers will also shut down. |
Some of the factories will be closed for nine weeks, the carmaker said. | Some of the factories will be closed for nine weeks, the carmaker said. |
GM faces the risk of collapse as the economic downturn has prompted a slump in sales of its vehicles worldwide. | GM faces the risk of collapse as the economic downturn has prompted a slump in sales of its vehicles worldwide. |
Its North America President, Troy Clarke, said that while it had been scaling back production, it wanted to "more closely align inventories with even more conservative market assumptions". | Its North America President, Troy Clarke, said that while it had been scaling back production, it wanted to "more closely align inventories with even more conservative market assumptions". |
Restructuring | Restructuring |
The firm has received $18.4bn (£12.5bn) in government loans as it works on plans to try and make itself viable. | The firm has received $18.4bn (£12.5bn) in government loans as it works on plans to try and make itself viable. |
The US government has demanded that GM and its rival Chrysler both submit viable restructuring plans before it will consider further aid. | The US government has demanded that GM and its rival Chrysler both submit viable restructuring plans before it will consider further aid. |
Both companies' restructuring plans were rejected at the end of March. This latest funding will bridge the gap until they have to present new reorganisation plans. | Both companies' restructuring plans were rejected at the end of March. This latest funding will bridge the gap until they have to present new reorganisation plans. |
GM has until 1 June to complete its restructuring or face seeking bankruptcy protection. | GM has until 1 June to complete its restructuring or face seeking bankruptcy protection. |
The funding for the carmakers has come from the Troubled Asset Relief Program (Tarp), which has about $700bn aimed at stabilising the US financial system. | The funding for the carmakers has come from the Troubled Asset Relief Program (Tarp), which has about $700bn aimed at stabilising the US financial system. |
Previous version
1
Next version