GM Shreveport plant to close
GM Shreveport plant to close
June 24, 2009
Buzz up!Twitter
The General Motors Shreveport plant will close by June of 2012 or sooner depending on market conditions, according to the company.
The Shreveport plant was not included in the new GM restructuring. However, it will continue to produce the H3, H3T, Colorado and Canyon vehicles.
Also, there will be two additional weeks of furlough this year. Employees are on furlough now and will return Aug. 17, but another two-week furlough will begin Sept. 28.
The reason the local plant was not included in the June 1 announcement of plant closures was because negotiations were ongoing for the sale of the Hummer brand.
GM spokesman Chris Lee said it would have been inappropriate to discuss the local facilities’ future during those discussions.
“GM has had to make some difficult decisions regarding our manufacturing footprint,” he said. “We’ve got too many plants … In order to position the company to have a profitable, self-sustaining future, we had to make the decision to not allocate Shreveport a new product” when production ends for its current lineup, which is 2012.
The plant produces the Chevrolet Colorado, GMC Canyon, Hummer H3 and H3T.
Meanwhile, GM is still in talks to sell the Hummer brand to Chinese company Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.
The sale is supposed to be complete by the third quarter of this year, but the Chinese government has to approve the deal first.
If it does go through, Lee said the Shreveport facility would continue to make the H3 and H3T under contract to the new company through 2010.
Any production after that would be up to the new owner.
Check back here for more details later today.
June 24, 2009
Buzz up!Twitter
The General Motors Shreveport plant will close by June of 2012 or sooner depending on market conditions, according to the company.
The Shreveport plant was not included in the new GM restructuring. However, it will continue to produce the H3, H3T, Colorado and Canyon vehicles.
Also, there will be two additional weeks of furlough this year. Employees are on furlough now and will return Aug. 17, but another two-week furlough will begin Sept. 28.
The reason the local plant was not included in the June 1 announcement of plant closures was because negotiations were ongoing for the sale of the Hummer brand.
GM spokesman Chris Lee said it would have been inappropriate to discuss the local facilities’ future during those discussions.
“GM has had to make some difficult decisions regarding our manufacturing footprint,” he said. “We’ve got too many plants … In order to position the company to have a profitable, self-sustaining future, we had to make the decision to not allocate Shreveport a new product” when production ends for its current lineup, which is 2012.
The plant produces the Chevrolet Colorado, GMC Canyon, Hummer H3 and H3T.
Meanwhile, GM is still in talks to sell the Hummer brand to Chinese company Sichuan Tengzhong Heavy Industrial Machinery Company Ltd.
The sale is supposed to be complete by the third quarter of this year, but the Chinese government has to approve the deal first.
If it does go through, Lee said the Shreveport facility would continue to make the H3 and H3T under contract to the new company through 2010.
Any production after that would be up to the new owner.
Check back here for more details later today.
Views: 61
Replies to This Discussion
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Permalink Reply by The_Baron on
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I know this is mot shale related, but considered it to be of importance.
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Permalink Reply by Holedigger on
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Yes we can! Yes we can! How's that "change" working out for you, UAW?
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Permalink Reply by Grillin' - MmmMmm on
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Holedigger: My thoughts exactly!! I'm guessing its working for the UAW just like all the rest of us...not very well!
"Fail, Baby, Fail"...my wishes for the regime's domestic policies!!!
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Permalink Reply by Carl on -
Give it to the Chinese. The wheels will probably start falling off the Hummers.
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Permalink Reply by Grillin' - MmmMmm on
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Maybe this factory can be bought by the car company in India. Word has it that India will be exporting cars to the US within the next couple of years. Very low prices. Their name?? Tata...no joke. Here's a link: http://articles.latimes.com/2009/mar/24/world/fg-india-car24
Now, I'm kind of interested in getting these Tata's. But I don't want a small Tata. I like my Tata's big!!
And no one should buy just one Tata. Seems like Tata's should be in pairs.
Okay, I'll stop.
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Permalink Reply by Grillin' - MmmMmm on
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Makes for real nice bumpers, doesn't it??
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Permalink Reply by The_Baron on
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Just goes to show that all the auto bailout money, that was spent to save jobs, was a failure and waste.
GM is in bankrupcy anyway.
The shreveport plant is closing anyway. (along with a long list of other plants)
Meanwhile, the taxpayers have spent BILLIONS.
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Permalink Reply by Grillin' - MmmMmm on
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This is what can be expected whenever government tries to get involved in the free market. Taxpayers get hosed, government gets money and the business fails.
We were told over and over again we had to have this bailout so that the companies could avoid bankruptcy as that would be armegeddon. Well, we gave them the check, the unions have all been paid off for their votes, and now we still have bankruptcy.
But that's okay because these smart guys are going to fix all the problems with the climate, healthcare and the side the sun comes up each day! Smartest guys in America...and the best tax cheats too!!
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Permalink Reply by The_Baron on
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Not only do we have bankrupcys anyway, but we have the Feds rewriting the rules as we go along. Why does the union get partial ownership with seats on the board???? What about the secured debt holders who should have been made whole first in a bankrupcy that are getting hosed??
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Permalink Reply by Grillin' - MmmMmm on
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Now Baron, you know those pesky bankruptcy laws weren't meant for Obama and the UAW to follow! They just tore up the premises of bankruptcy and voided all of the contracts with the bond holders. You can do that when you are Obamma, savoir and keeper of the money to buy the votes!
When contract law is stomped on to better suit a union, there is an additional implied risk on all bonds being sold in the future. No longer ccan a bondholder count on the law to protect his status as a secured lender. That means investors will drive the price of bonds up, raising the costs of debt to businesses and ultimately raising the cost of goods and services!
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