Sources: GM To Shut Many U.S. Plants Up To 9 Weeks

DETROIT (AP) - General Motors Corp. is planning to temporarily close most of its U.S. factories for up to nine weeks this summer because of slumping sales and growing inventories of unsold vehicles, two people briefed on the plan said Wednesday.

The exact dates of the closures were not known, but both people said they will occur around the normal two-week shutdown in July to change from one model year to the next. Neither person wanted to be
identified because workers have not been told of the shutdowns.

GM spokesman Chris Lee would not comment other than to say the
company notifies employees before making any production cuts public.

The automaker is living on $13.4 billion in government loans and faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn't meet the deadline, the company's CEO has said it will enter Chapter 11 bankruptcy protection.

United Auto Workers officials at several factories said they have meetings scheduled Thursday and Friday with plant managers and GM human resource officials to discuss production changes.

The automaker's sales were down 49 percent in the first quarter compared with the same period last year, and GM had a 123-day supply of cars and trucks at the end of March, according to Ward's
AutoInfoBank. GM already has more than a six-month supply of several models.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


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