Auto Plant Closures By Brenda Williams At Isnare.com Ezine Articles

The United States and the world is suffering through a tough economic crisis and no business industry is safe. The automotive industry is no exception to the rule either. Thousands of jobs have already been cut by the Big Three automakers, General Motors, Chrysler, and Ford, in the United States and worldwide. A number of manufacturing plants have been shut down as well and General Motors recently announced that they will need to cut another 47,000 jobs and shut down roughly a dozen or so plants by the year 2012 to stay afloat.

A major problem with the current economic crisis and the crisis that is affecting the automotive industry is that the Big Three automaker leaders showed up in Washington DC via private jet airplanes to make their bailout pitch to the United States Senate. They used their own private jets to ask for more money, money that will come out of the taxpayer’s pockets. As the economic crisis continues to grow across not only the country but also the world, General Motors is planning to cut down to just 7,000 employees in their Canadian operation by the year 2010 but announced that they will not close any more plants in Canada. They also plan to cut down executive’s salaries ten percent, reduce benefits for hourly employees, and continue to build new models in Ontario. They currently employ 12,500 workers in Canada, which is down from 20,000 in 2005. Aside from not closing down anymore plants, General Motors did announce that they will close a large number of car dealerships in Canada, reducing the number from 700 to about 450 or 500 by the year 2014.

The economic crisis is affecting more than just the United States and Canada as evidenced by the news out of Great Britain. In a recent report, a car manufacturing plant will be shut down in the United Kingdom but that plant has yet to be named. The result of the plant closing is the loss of over 100,000 jobs. Back in the United States, General Motors shut down 12 manufacturing plants in the calendar year 2008 and plans to shut down another 14 by the year 2012. Along with the plant closures, General Motors is planning on closing more and more dealerships across the country as well.

By the year 2012 General Motors hopes to reduce the number of dealerships from 6,246 to 4,700 with a possible additional 600 dealerships shut down by 2014. General Motors announced their most recent plans in February of 2009 but did not name the plants that they aim to shut down by the year 2012. Chrysler also announced in a new plan to the United States government that they will also be cutting at least 3,000 jobs within the year and closing more of their plants as well. Chrysler, along with General Motors, also did not announce which plants they would be closing within their specified time line of events. With the economy in no signs of a turnaround, the automotive worlds struggles due to the economy are being felt worldwide and is preparing for even worse times.

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