While companies like Rolls-Royce are florishing, companies like GM Canada are doing the exact opposite.

It was recently made known that GM Canada is decreasing their Canadian dealership by some 40%. That’s 245 dealers GM will say goodbye to. Evenworse, the Canadian Automobile Dealers Associations estimates that around 10,000 jobs could and will be affected by these closures.

When will the insanity end?

Read (CBC)

Tags: Closure, dealership, economy, gm canada, recession

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Chrysler, just like General Motors, is cutting down the numbers and AutoNation has announced that 7 of their dealers will be hit by the dealer closure. As part of the dealer consolidation plan filed by Chrysler today in its bankruptcy, approximately 789 Chrysler dealerships will be closed nationwide.

The AutoNation stores that will be closed by the consolidation plan represented only 1% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.

Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe Chrysler’s consolidation plan is a difficult but positive step forward for Chrysler and the automotive retail industry. Dealer consolidation is a necessary measure in today’s automotive industry and will strengthen America’s dealer network and improve dealer profitability over the long term.”

Mr. Jackson commented further, “The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”

(Source) Press

Tags: automotive industry, autonation, Bankruptcy, chief executive officer, Chrysler, chrysler dealerships, Closure, consolidation plan, debt covenants, franchises, General Motors, necessary measure, operating income, profitability, retail industry, retail landscape, term strategy, time charges

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It looks like the never-ending dilemma of companies folding due to the recession has added another one with the announcement that Gates Corporation is shutting down its Rockford plant. Gates employs 150 people in Rockford. The production work they were doing will be absorbed into Gates’ other North American production facilities.

“We are in a very competitive business, both here and internationally. We regret having to consider any plant closing,” said David Gau, President of Gates Fluid Power. “The closure is not a reflection on the performance of the plant employees or plant operations. Rockford has been in operation for a long time, and we respect and appreciate our longstanding relationship with our employees and the community”.

“We are in a very competitive business, both here and internationally. We regret having to consider any plant closing,” said David Gau, President of Gates Fluid Power. “The closure is not a reflection on the performance of the plant employees or plant operations. Rockford has been in operation for a long time, and we respect and appreciate our longstanding relationship with our employees and the community”.

(Source) WREX

Tags: Closure, community source, david gau, dilemma, fluid power, gates corporation, long time, longstanding relationship, plant gates, plant operations, recession, reflection, rockford

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The poor economy claims another victim — GM has recently announced that they are currently working towards eliminating their Pontiac brand, a brand that has been around for a full 83 years. This means that the rumors we heard about a few days ago are true.

Recent buyers of a Pontiac automobile need not worry as exec Jim Hopson has said that the company will continue to function just as always even though they won’t within the next 5 years. He then went on to say that these automobiles will still be under warranty and that GM will continue to produce Pontiac parts.

Seeing the company that pushed out cars such at the GTO, Firebird, and Trans-Am die marks a sad day for American muscleheads everywhere.

Read (KickingTires)

Tags: Closure, economy, jim hopson, recession

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The car industry suffers another big blow as long time auto glass manufacturer Asahi Glass Corporation has announce that they will be cutting operations by the end of 2009 due to declining demand for automotive glass.

According to the company, the capacity utilization of its automotive glass business has declined to about 50% due to the marked decreases in automotive glass demand in Japan.

Approximately 170 employees are engaged in the automotive glass business at the Kitakyushu plant.

These employees will primarily be transferred to other plants or made eligible for the voluntary early retirement system. Other businesses at the Kitakyushu plant will continue without change.

AGC expects to incur extraordinary losses of approximately JPY5 billion for the fiscal year ended December 2009 with the closure of the automotive glass business at Kitakyushu plant.

(Source) Automotive Business Review

Tags: agc, asahi glass, asahi glass corporation, auto glass, automotive glass, capacity utilization, car industry, Closure, decreases, early retirement, fiscal year ended december, glass business, glass manufacturer, Japan, losses, plant source, retirement system

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Commercial Vehicle Group has announced that it will be shutting down its Vancouver facility and will in turn distribute the work towards other nearby North America CVG plants. CVG’s Vancouver operation produces interior soft trim and molded dash assemblies for the heavy truck industry as well as molded products for the gaming and material handling industries.

The facility is approximately 62,000 square feet of leased space and currently employees approximately 60 hourly and 11 salary employees who will be impacted by this action. At its peak, the facility employed over 200 associates.

The costs associated with the restructuring plan include severance, facility shutdown costs, contractual costs and move costs to relocate certain equipment and assets. The Company estimates the closure to be substantially complete by the end of July 2009 and estimates that the total restructuring cost to be incurred related to this plan will be approximately $0.8 million. The Company anticipates a net pre-tax expense of approximately $0.4 million during 2009 and $0.7 million in annual cost savings thereafter.

(Source) Press

Tags: assets, Closure, cvg, heavy truck, material handling, molded products, move costs, north america, salary employees, tax expense, vehicle group

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General Motors announced at Tuesdays press conference the closure of Saturn. Unfortunately in its 20-year history, the Saturn brand has never been profitable for GM. All Saturn dealerships will close by 2011 and no new models will be introduced.

Meanwhile, Pontiac will be phased out as a distinct division but certain “niche” models will still carry the Pontiac name and will be sold at Chevrolet dealerships. This announcement  came as part of GM’s viability plan being submitted to the U.S. Congress and President Obama today. Additionally there is the planned sale of Hummer and a potential spin-off of Saab.

Tags: Closure, GM, HUMMER, Saab, Saturn

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