Detroit, Michigan – General Motors will schedule multiple weeks of downtime at 13 assembly operations in North America, removing approximately 190,000 vehicles from its production schedule in the second and third early quarter of 2009. The announcement will not affect plants producing newly-launched products, including the Chevrolet Camaro in Oshawa, Ontario, and the all-new Buick LaCrosse (Allure), which has been moved from Oshawa to Fairfax, Kansas.
GM said the move is due to high levels of dealer vehicle inventories, and will also allow the company to bring production in line with current market demand. “The downtime actions also consider the possible production implications of the complicated and difficult negotiations with Delphi and its debtor in possession lenders,” the company said in a statement.
GM said it has been actively engaged with Delphi management and the various constituencies involved since the inception of Delphi’s bankruptcy case almost four years ago, and more recently, has been in negotiations with Delphi and its lenders to arrive at solutions that would ensure GM’s source of supply under fair and reasonable terms. “While GM has proposed a potential solution that would allow for the successful and rapid resolution of Delphi’s bankruptcy case, its lenders have rejected this proposal,” GM said in a statement. “Without the successful resolution of this dispute, it is General Motors’ view that Delphi or its lenders could force GM into an uncontrolled shutdown, with severe negative consequences for the U.S. automotive industry.”