The Detroit News reports that Michigan will be the state hit hardest by the closing of production plants by General Motors as part of their restructuring process to become a profitable company at much lower levels of sales and production:
General Motors Corp. will permanently shutter nine more plants and idle three more to slash production and labor costs as part of the automaker’s court-ordered restructuring.
The moves impact seven facilities in Michigan, including five of which will be closed in Pontiac, Grand Rapids, Livonia, Flint and Ypsilanti Township…
The Pontiac Assembly Plant will close in October, while GM’s Orion Township plant will shut down production in September and go on standby…
GM will close a powertrain plant in Livonia in June 2010, followed by closings of Flint North and a plant in Ypsilanti Township, both in December 2010, along with plants in Parma, Ohio, and Fredericksburg, Va. Stamping plants in Indianapolis and Mansfield, Ohio, also will close.
A stamping plant in Pontiac will remain on standby in December 2010.
The company’s goal is to become profitable with American car sales at 10 million units per year. Up till now, the company has needed overall American car sales to be 16 million units to be profitable given their market share.