GM to shut many U.S. plants up to 9 weeks - WKRN News 2

GM to shut many U.S. plants up to 9 weeks


SPRING HILL, Tenn. - Spring Hill General Motors workers learned Thursday they'll be out of work for a few weeks this summer.

The plant will shutdown for five weeks, beginning in June.

Other GM facilities across the country will close for up to nine weeks because of slumping sales and growing inventories of unsold vehicles.

The shutdown will be part of the normal two-week closure in July to change from one model year to the next.
Thousands of employees will be laid off, but will still receive some of their pay.

The summer closures will have a huge impact in Middle Tennessee.

"It would be devastating because of where we are located.  A lot of our business comes from GM workers and their families.  Any closure would have a hug impact on our business," explained Keith Redd, owner of Whisker's Catfish.

Tim Stannard, VP of the UAW Local 1853, said, "I think finding out it's a five week shutdown when we're already expecting two weeks is not as severe as what they were anticipating, so they're happy about that."

The Spring Hill GM plant employs around 3,500 people and makes the Chevy Traverse.

The facility underwent a nearly $700 million upgrade two years ago and is one of GM's newer plants.

Spring Hill employees already lost many weeks of work.  The plant shutdown before Christmas and didn't reopen until February 2009.

The shutdown could also have devastating effects for auto parts suppliers already near bankruptcy because of previous production cuts.

GM is living on $13.4 billion in government loans and faces a June 1 deadline to restructure or seek bankruptcy protection.

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