GM has made the move yesterday to stop operation of their Wilmington, Delaware plant. This 62-year-old assembly plant was responsible for manufacturing the Saturn Sky and Pontiac Solstice, which has ceased production.

GM’s ultimate plan is to get rid of the Pontiac and Saturn brand names; Pontiac being discontinued completely and Saturn to be sold to the Penske Automotive Group.

The workers who were laid off had a “celebration” today of their last day of work. One employee, talking to delwareonline, said “It was so quick, you know?” That’s what hurt everybody.”

via AutoEvolution

Tags: assembly plants, delaware, GM, penske automotive group, pontiac solstice, saturn sky

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If you think Chrysler’s declaration of bankruptcy is one setback, wait until it amplifies on the affiliated suppliers. Apparently, the auto suppliers will also have some problems coming their way, potentially losing one of their biggest clients for some time now.

Problems with suppliers could also impact production at the US plants of other major automakers such as Ford, Toyota and Honda which have been working with months to ensure to stability of their supply.

Under a plan announced Thursday by President Barack Obama, Chrysler aims for a “surgical” bankruptcy to wipe out a portion of its debts, allowing the creation of a new firm tied to Fiat to put the Detroit firm on the road to profitability.

Chrysler said it will idle most plants during the bankruptcy process, which it anticipates will take 30 to 60 days. But analysts warn the process could take significantly longer.

And suppliers were already smarting from news that General Motors — which has until June 1 to present a viability plan to the US Treasury — plans to shut most of its assembly plants during May, June and July to help control inventory and avoid difficulties with parts shortages.

US auto sales, which collapsed last fall amid a deepening economic crisis, were down 34 percent in April and are not expected to improve for months.

(Source) ABS CBN

Tags: assembly plants, auto sales, Auto Suppliers, automakers, bankruptcy process, Barack Obama, Chrysler, economic crisis, Fiat, Ford, ford toyota, General Motors, Honda, us treasury

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