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UPDATE 1-GM to temporarily idle four North American auto plants

Published 2016-04-22, 12:04 p/m
© Reuters. UPDATE 1-GM to temporarily idle four North American auto plants
GM
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(Adds detail including models produced by the plants to be
idled)
April 22 (Reuters) - General Motors (NYSE:GM) GM.N said on Friday it
will close four North American plants that primarily make cars
and not SUVs or trucks, for two weeks due to a parts shortage
linked to the recent earthquake in Japan.
GM looked at parts availability and its North American plant
operations and decided that these four plants would close to
ensure adequate parts supply, a company spokeswoman said.
Operations at Lordstown, Ohio; Fairfax, Kansas; Spring Hill,
Tennessee; and the Flex Oshawa plant in Ontario will be shut for
two weeks beginning on April 25, GM said in a statement.
GM will make up the production lost during the shutdowns by
the end of this year, the company said.
"This temporary adjustment is not expected to have any
material impact" on the company's full-year production plan or
either its second-quarter or full-year financial results for
North America, GM said.
In the past few years and especially as gasoline prices have
remained low, GM and other automakers have experienced greater
consumer demand for pickup trucks and SUVs than sedans and
hatchbacks.
The Lordstown plant makes the Chevrolet Cruze compact car;
Spring Hill makes the Cadillac XT5 midsize crossover SUV;
Fairfax makes the midsize Chevrolet Malibu and the fullsize
Buick LaCrosse sedans; and Oshawa Flex makes the fullsize
Chevrolet Impala and the midsize Buick Regal sedans as well as
the fullsize Cadillac XTS sedan.
GM shares were down 0.9 percent at $32.37 at midday on
Friday.


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