GM factory shutdowns a silver lining for buyers
Story Created:
Apr 23, 2009 at 4:41 PM EDT
Story Updated:
Apr 23, 2009 at 6:12 PM EDT
(WKTV) - General Motors Corporation says it will temporarily close 13 assembly plants in the United States and Mexico as it tries to control growing inventory due to slumping sales.
Al Carbone, President Of The Carbone Automotive Group says that it is normal for GM to shut down operations in the Summer. However, he said normally the shut downs last only around two weeks.
Carbone says because of these longer than usual shutdowns, there is a silver lining for the buyer. He says the factory shutdown will allow for the company to clear out old inventory that has been sitting around because of the economy.
"To a degree, yes, they have come out with some really good rebates and 0% finance plans," Carbone said. "Those have really helped us out a lot. We have seen a large savings as a result of this. They're doing what they can to keep them moving."
However, he says, this is bad news for the workers in Detroit, who will be out of work for roughly nine weeks.
The company said in a statement on Thursday that the closures will
start in May and end in July.
GM plans to cut production by 190,000 vehicles. Because of that, they will look to clear out backed-up inventory, meaning good deals for the consumer ahead.
Carbone says because of the backup at the GM factories, there is a backup of vehicles on their GM brand lots. Carbone says like their dealership, the back-up in inventories are costly to all dealerships.
GM plans to cut production by 190,000 vehicles.
Analysts say the company could be seeing sales decline because
of talk about a potential bankruptcy.
GM has been 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...or else file for bankruptcy.
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