GM said the plan is to achieve $7 billion in cost reductions on a running rate basis by the end of 2006 - $1 billion above its previously indicated target.
"The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," Mr Wagoner told employees. "But these actions are ncessary for GM to get its costs in line with our major global competitors.
In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible."
The company said the Assembly plants that will close are in Oklahoma City, Lansing, Michigan, Spring Hill, Tennessee, Doraville, Georgia, and Ontario, Canada.
| GM said the plan is to achieve $7 billion in cost reductions on a running rate basis by the end of 2006 |
Assembly plants that will close are in Oklahoma city, Lansing, Michigan, Spring hill, Tennessee, Doraville, Georgia, and Ontario
Wagoner said GM also will close three service and parts operations facilities. They are in Ypsilanti, Michigan, and Portland, Oregon, and one unidentified site. A shift also will be removed at a plant in Moraine, Ohio.