Wednesday, November 12, 2008

GM suspends S. Korean production

From Financial Times UK:

"General Motors plans to suspend production at its factories in South Korea for about two weeks starting next month, in one of the strongest signs yet that the crisis in carmaking has spread to Asia.

The shutdown will take effect from late December and affect all five of GM's Korean plants formerly owned by Daewoo, which form one of the loss-making US carmaker's best-performing business units.

"The economic crisis is truly global," Jay Cooney, GM Daewoo's vice-president, said. "What we're beginning to see here in Asia is no different from what is going on in Europe and what has already happened in the US."

Company officials said the temporary closure in Korea stemmed from slowing demand and GM's need to manage production and rising inventories rather than a shortage of cash."

These announcements are nothing short of amazing. Every day we see headlines of an automaker in the throes of death. Without being sensational or inflammatory, I would have to say we are watching historic events unfold before our very eyes.

I truly want GM to survive and bring us the Chevy Volt. This car is one of the real answers to living oil free.

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