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Published: July 19, 2008 09:52 am    print this story   email this story  

More GM factory closures likely

Analysts say another assembly plant may close

ROMULUS (AP) -- At a General Motors Corp. factory just west of Detroit, about 1,000 workers are still cranking out mighty but thirsty V-8 engines that go into pickup trucks and sport utility vehicles.

The automaker's plans to cut 300,000 pickups and SUVs out of the production schedule by the end of next year should be a concern at Romulus Powertrain, because industry analysts say any factory that makes mostly truck components could be in danger of closure.

GM officials say half of the production cut will come from accelerating previously announced closures at four assembly plants. They hinted the other half could come from canceling shifts at other factories.

Analysts, however, say it's possible another assembly plant could be shuttered, and they say some factories that make truck parts almost certainly will be closed.

"Virtually no factory is off the table," said Michael Robinet, vice president of global forecast services for CSM Worldwide, an auto industry consulting company based in Northville.

GM announced in June that it would idle pickup and SUV factories in Janesville, Wis.; Oshawa, Ontario; Moraine, Ohio; and Toluca, Mexico, as it tries to deal with a rapid shift to smaller vehicles brought on by $4-per-gallon gasoline. This week, the company said it will speed up the closures, although it didn't give specifics.

GM will be left with four pickup plants, one SUV factory and one full-size van plant in the U.S. It also has truck factories in Mexico.

Of the U.S. pickup plants, analysts said one in Pontiac is most vulnerable because it's operating on only one shift, although it might not be closed for several years.

A pickup plant in nearby Flint is still running on two shifts, and it's presumably safe because it's the only one that builds the one-ton crew-cab body style of the heavy-duty pickups, said Haig Stoddard, an auto analyst.

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Photos


In this Sept. 21, 2007 file photo, employees leave GM's Romulus Engine Powertrain Plant in Romulus, Mich. General Motors Corp., plans to cut 300,000 pickups and SUVs out of the production schedule by the end of next year should be a concern at Romulus Powertrain, because industry analysts say any factory that makes mostly truck components could be in danger of closure. Gary Malerba/AP (Click for larger image)

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