GM to Shut Four Plants Temporarily After Japan Quakes
GM says shutdowns at North American assembly plants are a result of supply-chain problems from Japan earthquakes
GM said it would temporarily shut down its assembly plants in Spring Hill, Tenn.; Oshawa, Canada; Lordstown, Ohio; and Fairfax, Kansas to mitigate a parts supply issue caused by the two devastating earthquakes that hit southern Japan just 28 hours apart last weekend.
GM said the temporary shutdown isn’t expected to have any material impact on its full-year production plans or its financial results for the second quarter of the year. Models affected by the shutdown include the new Cadillac XT5 crossover, which is built in Spring Hill, and the new Chevy Cruze, manufactured in Lordstown.
“We know Toyota and Nissan have taken downtime as well. We await to see if others are impacted. But our view is that near-term disruption could help alleviate some near-term elevated U.S. inventory levels,” Mr. Spak wrote.
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