GM to temporarily shut 13 plants, cut production


DETROIT - General Motors Corp. says it will temporarily close 13 assembly plants in the U.S. and Mexico as it tries to control growing inventory due to slumping sales.

The company said in a statement Thursday that the closures will start in May and end in July. Shutdown weeks vary by factory, but some will be closed for nine weeks. The company plans to cut production by 190,000 vehicles.

GM says the shutdowns will help control high dealer inventories and bring production in line with sales.

Analysts say the company could be seeing sales decline because of talk about a potential bankruptcy.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

DETROIT (AP) - General Motors Corp. is starting to tell its workers about plans to temporarily close most of its factories for more than two months to control inventories due to sagging sales.

United Auto Workers Local 276 President Enrique Flores in Arlington, Texas, says he was told Thursday that his factory will close for nine weeks starting May 11. The plant makes big sport utility vehicles such as the Chevrolet Suburban. Flores says the plant is to reopen July 13.

Other union officials say they have meetings scheduled Thursday to discuss production changes.

Three people briefed on GM's plans said Wednesday that nearly all its factories will be closed for up to nine weeks from May to July.