General Motors to close four plants

General Motors (GM), the world’s largest carmaker, announced yesterday it is to close four plants and is to explore the possibility of selling its Hummer brand due to soaring fuel costs.

The company’s chairman, Rick Wagoner, confirmed the plant closures were in Oshawa, Ontario, Canada; Moraine, Ohio; Janesville, Wisconsin; and Toluca in Mexico.

GM confirmed the closures were in response to growing demand for fuel-efficient vehicles and to economic and market challenges in North America. It is believed $1 billion a year from 2010 will be saved as a result of the plant closures.

The closures will affect about 8,000 workers at the four plants, however, not all of those people will lose their jobs. Some will be able to replace other workers who are leaving due to early retirement and buyout offers.

The announcement comes shortly after GM said that 19,000 hourly workers had accepted buyouts.

Shares in the carmaker have lost nearly 60% since their high in October 2007.

Last month GM’s rival, Ford Motor Company, said it had been hit by the rising cost of raw materials and soaring petrol prices.

Ford warned that it no longer expects to return to profitability in North America next year.

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