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June 4, 2009

Cars impacted by GM factory closings

General Motors announced that is accelerating the closure of some U.S. factories and idling others, with more production changes to follow as the company restructures under Chapter 11 bankruptcy. We already know that GM is planning to eliminate its Hummer, Pontiac, Saab, and Saturn brands. (In fact, GM just announced the potential sale of Hummer to a Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd.)

Latest production slowdowns and the impact on the cars produced there:

Orion Township, Mich., north of Auburn Hills, builds the well-rated Chevrolet Malibu, as well as the underperforming Pontiac G6. Since we know the new GM will close down the Pontiac division, the G6’s demise is no surprise. The Malibu is also built in Fairfax, Kan., which also currently builds the Saturn Aura. With GM no longer building Saturn models after 2011, the Fairfax plant will presumably be able to build more Malibus. The Orion plant is not being closed, but idled until GM needs extra production capacity once sales pick up.

Pontiac, Mich., builds the 3/4-ton heavy-duty versions of GM’s full-sized pickups, the Chevrolet Silverado and GMC Sierra. Light-duty versions of the trucks are built in Ft. Wayne, Ind., and in Silao, Mexico. Even heavier-duty, one-ton versions of the trucks are built in Toluca, Mexico. GM could move three-quarter-ton production to Mexico, or possibly Indiana.

Spring Hill, Tenn., home to the original Saturn assembly plant, now builds the new Chevrolet Traverse crossover. (The Traverse is a version of GM’s other large, car-based SUVs, the Buick Enclave, GMC Acadia, and Saturn Outlook.) With Saturn scheduled to be culled from the GM family, the Traverse could be moved to the GM’s Delta Township assembly plant in Lansing, Mich., which builds the Acadia and Enclave. Like Orion Township, Spring Hill is being idled for now, not closed.

Wilmington, Del., produces the Pontiac Solstice and Saturn Sky roadsters, along with their rebadged twin, the Opel GT, which is exported to Europe. With Opel being sold to Magna, and the days numbered for Pontiac and Saturn, GM clearly won’t need these models. We found both the Solstice and Sky were underdeveloped and performed too poorly in our testing to be recommended. Consumers apparently agreed, and neither sold well.

These moves come as GM positions itself to trim divisions and balance supply with demand, tailored to suit its market share and sales volume.

Read "What does the GM bankruptcy mean to you?" To get more answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub.

Eric Evarts

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