Financial news

GM Suspends Production at the Majority of Factories in the USA

23 апреля 2009 г.

General Motors, one of the largest automobile concerns in world, in summer will suspend the production at the most of factories in the USA for of about two months however precise terms are unknown.

This pause is caused by abrupt decrease in sales and a lot of the cars in storage. As a matter of fact, by the end of March GM had a 123-day's stock of not sold cars, thus quantity of some models, for example Pontiac G5 and Chevrolet Silverado, reached more than a half-year stock.

In the first quarter of year 2009 GM car sales fell off for 49 percent in comparison with the similar period of the year 2008. In experts’ opinion, closing of factories means, that the GM management does not considert, that the situation with sales will improve in the near future.

Let's remind, that in the beginning of the year 2009 GM has got 13,4 billion dollars as a loan from the government of the USA . Upon the loan terms, till June, the1st the concern should carry out mass re-structuring, and both costs and the sum of a duty should have been reduced essentially. If  failure, the company will be compelled to submit the application for bankruptcy.

As it was informed earlier, within this plan, in the current year the GM schedules to reduce 47 thousand working places.
 

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