GM to Close U.S. Factories for the Summer

There are various media reports that GM will shut down all of it's U.S. plants for the summer, or 9 weeks.

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, three people briefed on the plan said Wednesday.

Analysts say the company could be seeing sales decline because of talk about a potential bankruptcy.

The exact dates of the closures are not known, but the people said they will occur around the normal two-week shutdown in July when changes are made from one model year to the next. None of the people wanted to be identified because workers have not yet been told of the shutdowns.

It is also reported GM will miss it's $1 billion dollar loan payment.

The workers will still get paid. I am unaware of anything like this happening since the Great Depression.

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I've been wondering

working on a piece, if they get full pay or some sort of abbreviated pay or unemployment compensation? I've been hearing it's one of the three.

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Bankruptcy and Cars

doesn't do much to make people want to buy them. Add in the really tough credit markets, and GM cars aren't moving.

UAW workers affected by the shutdown will be placed on temporary layoff, where they receive state unemployment benefits and company supplemental pay that roughly equals about 70% of their gross pay. GM has 47 U.S. manufacturing facilities and employs about 55,000 UAW workers.

They're asking for another four years -- in a just world, they'd get 10 to 20 ~~ Dennis Kucinich

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