27 April 2009 15:02 [Source: ICIS news]
HOUSTON (ICIS news)--General Motors (GM) will cut 23,000 US jobs by 2011 while slashing 42% of its dealerships and closing 13 plants as part of its latest bid to avoid filing for bankruptcy, the auto major said on Monday.
Additionally, the company said it will drop its ?xml:namespace>
"We are taking tough but necessary actions that are critical to GM's long-term viability," said CEO Fritz Henderson. "Our responsibility is clear - to secure GM's future - and we intend to succeed.
“At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team.”
The announcement could be a blow to US plastics makers, who depend on the auto industry as a critical end market.
Each US-made automobile uses 331 lb (150 kg) of plastics, according to Kevin Swift, chief economist of the American Chemistry Council (ACC).
Moreover, the ACC estimates that each vehicle contains nearly $2,700 (€2,052) worth of chemical products or chemical processing value.
Investors responded positively to the news that the company could avoid filing for bankruptcy. Shares of GM rose 24.3%, or 41 cents, to $2.10/share in early Monday trading on the New York Stock Exchange.
($1 = €0.76)
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