Tuesday, February 17, 2009

BREAKING NEWS: GM will discontinue Saturn brand by 2011 and eliminate 20,000 jobs in U.S.; what will happen to its Spring Hill, TN., operations?

General Motors will discontinue its Saturn brand by 2011, a vehicle that used be built in Spring Hill, TN.

The company also said it would be eliminating 20,000 U.S. auto jobs and closing five plants, according to its reorganization plan filed with the Treasury Department this evening and reported by The New York Times.

GM was not more specific about which plants.

GM says it will cut back on its brands from eight to four. The Spring Hill plant produces some Chevys. Its closure would devastate the Midstate economy, resulting not only in suppliers shutting down but many restaurants and retailers. Loss of jobs could be 5,000 or more.

The fate of GM's Tennessee workers may be sealed or saved sooner than later. GM wants an incredible $30 billion from the federal government soon, or it will be out of money to pay workers by the end of next month. It would like $2 billion immediately to help it with those bills. Wouldn't we all? How are you doing with your bills?

That $30 billion sum is $12 billion more than the automaker wanted a few months ago. Chrysler wants $2 billion more than it asked for originally.

Most Americans do not favor any bailout and would prefer the automaker file for bankruptcy reorganization just like any other business. And that will mean more jobs cuts and plant closures, because creditors will be calling the shots.

1 comment:

Anonymous said...

they don't make Saturns in Spring Hill any more do they? Isn't it a Chevy crossover vehicle now? Saturns are made in Mexico now aren't they?