• May 28th 2009 at 10:55AM
  • 24
According to a source at The Associated Press, General Motors will announce the closure of 14 factories on Monday morning. The shutterings will reportedly occur by the end of 2010, and are being viewed as part of GM's widely anticipated plans to file for Chapter 11 bankruptcy.
The move would not be completely unexpected, as GM had previously announced that it expects to have to close 16 plans by the end of next year, resulting in some 21,000 pink slipped workers. As GM has already announced that an engine plant in Massena, New York and a stamping plant in the Grand Rapids, Michigan area will be shutting down, this would bring the full tally to 16.

According to the AP report, factory-level union leaders are unaware of which plants will be axed, but the plan is said to include four assembly facilities, along with stamping, engine, and transmission operations.

[Source: Associated Press (via Chron) | Image: Dan Kitwood/Getty]

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    • 1 Second Ago
      • 6 Years Ago
      My bet is the following will be part of the closure:

      Spring Hill, TN plant that builds the Traverse
      Deleware plant that builds the Sky and Soltice
      Lake Orion, MI plant that builds the G6 and Malibu (Malibu also built in Kansas)
        • 6 Years Ago
        The Other Bob has probably got it right.
        "Spring Hill, TN plant that builds the Traverse"
        "Deleware plant that builds the Sky and Soltice"
        "Lake Orion, MI"

        One other guess would be the Mexico plant that builds the Saturn Vue.

        I was glad that GM and Chrysler got loans in December, but looking at it now I wish they had filed bankruptcy without government intervention. I PRAY for the best for everyone, but this is looking like a train wreck.
      • 6 Years Ago
      I'm sorry, they should've declared chapter 11 back in October, when we had the first bailout discussions. They burned through more than a dozen billion dollars only to reach the same result.

      As much as I loathe Obama's quasi-socialist policies of controlling banks and now GM, the problem was decades-long. Mismanagement at the top, a parasitic union that essentially shot itself in the foot and is now paying the consequences.

      Top it off, the current administration is treating the US dollar like monopoly money, transferring Wall Street's incompetence and toxic assets into an inflating currency with the Reserve printing money like no tomorrow.

      The problems came from every angle, from labor unions to management to the politics that surrounded it all. Hopefully GM can come out trimmer and stronger, but with an administration that thinks a $3.4 trillion budget is a good idea, I'm not crossing my fingers.
      • 6 Years Ago
      It's sad how manufacturing is disappearing in America. And not just cars... everything.
        • 6 Years Ago
        This is the problem with the fake economy that me have.
        Fundamentally in an economy you need to make a product to make money.
        We have sent a great deal of our manufacturing out to other countries and we are more or less a financial country now, stock markets and banks ie. fake economy.
        We are juggling fake money from the stock markets and the banks hoping it all does not fall apart.
        To me it is one giant Ponzi scheme.
        My neighbor is one of the GM bosses that set GM up in China back in the early 90's and back then I wondered if you got rid of the jobs from the workers that bought your cars and sent them to another country where those workers could not afford the cars how that would work out and I guess we have our answer.
        • 6 Years Ago
        You want manufacturering to return to the US? Then don't complain about prices being high at the onset of the shift back or that you have to save more to buy things and, in turn, enjoy fewer luxuries. While I don't have a problem doing so and living simply, the majority of America wants cheap luxuries...you want cheap, you have to cut costs. The "problem" you are talking about is not found within the companies, it is found within the consumers.

        On your other point, there is nothing wrong with being a monetary and transactional based economy (look at Switzerland) you just have to know how to make it work. Just think about how nice it would be if we owned all of China's debt and other countries came to us for credit...
        • 6 Years Ago
        @ Venom

        I've been say exactly that for years. All I'll add is, its not just the loss of the Auto Workers jobs but all the support industries such as parts suppliers, machine & equipment manufacturers etc here in the States that the Detroit three dumped for foriegn companies over the last 15 or so years.
      • 6 Years Ago
      Life has come a full circle for G.M. It started out a century ago with taint [read taint] and now, that same taint has come to haunt it back - http://pratishgandhi.blogspot.com/2009/05/crutch.html
      • 6 Years Ago
      It's finally gone bankrupt. Americans now own 72.5% of an enormous company.

      I hope it works out well.

      Now Opel!
      • 6 Years Ago
      Here's some more horrible news for the US auto industry. Hate to see this. My thoughts and prayers are with everyone in the GM family.
      • 6 Years Ago
      GM is coming up for one last grasp of breath before the inevitable drowning.

      Major GM bondholders OK revised deal
      GM reports that bondholders would get an increased stake in the company if they agree to not fight plans for a quick bankruptcy turnaround.

      By Chris Isidore, CNNMoney.com senior writer
      Last Updated: May 28, 2009: 10:57 AM ET

      NEW YORK (CNNMoney.com) -- The Treasury Department and a committee of major bondholders at General Motors have reached a deal that could give creditors a larger stake in GM than previously offered as long as they agree not to fight the government's plans for a quick bankruptcy at GM.

      The agreement, revealed in a Securities and Exchange Commission filing by GM (GM, Fortune 500) early Thursday, would essentially give the bondholders 10% of the company but also give them the rights to buy an additional 15% of the company's stock at a low price.

      The deal is unlikely to allow GM to avoid bankruptcy, however. If anything, it might clear away potential obstacles to the government's plans to use bankruptcy as a way to turn around the nation's largest automaker.

      More details at
        • 6 Years Ago
        Just a slight point...

        Obama graduated from harvard, but I believe that was harvard law school, not business.

        Not that most of the clowns involved care about business OR the rule of law...
        • 6 Years Ago
        That's interesting. You post your "Jamie's guide on how to save GM" multiple times and now you say it can't be done? What gives?
      • 6 Years Ago
      The pic says it all..."Angry Tree-Fence is coming for you GM!"
        • 6 Years Ago
        Love it! Why can I only hear Adam Sandler's voice when I read this comment?

        Sucks for GM though. Slash and burn time. Re-org on the scale of which no one can imagine.
      • 6 Years Ago
      If the Obama is ever going to get a Midwest regional transit corridor made, this would be the perfect political time to do it.

      During WWII car factories were repurposed to built other stuff. We almost should consider these times as a war for our way of life, and take this opportunity to repurpose some of the shuttered plants to start cranking out infrastructure pieces for a rail system.

      Expensive, heck yeah. But with less 'made in America' to go around these days, rail could be compliment US Auto as another American product.
      • 6 Years Ago
      It sounds like a lot of people want this to fail because they don't like Obama and his politics, that's kind of petty.

      Wagoner was the one who went and begged for help. Wagoner was the one who couldn't develop realistic restructuring plans.

      Obama isn't making these decisions personally people, be realistic, there are many very well educated and experienced professionals working for the government.

      The government does, afterall, operate organizations that are far larger, and more complex than GM, more successful too. It's clear that Wagoners plan was to just keep asking for more bailouts, other than that, Wagoner didn't seem to have a plan.
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