GM to Shut Plants After Japan Quakes
23 April 2016 - 3:00AM
Dow Jones News
General Motors Co. said Friday that it will shut down production
at four North American assembly plants for two weeks starting
Monday due to supply-chain problems caused by the recent
earthquakes in Japan.
GM said it would temporarily shut down its assembly plants in
Spring Hill, Tenn.; Oshawa, Canada; Lordstown, Ohio; and Fairfax,
Kansas to mitigate a parts supply issue caused by the two
devastating earthquakes that hit southern Japan just 28 hours apart
last weekend.
GM said the temporary shutdown isn't expected to have any
material impact on its full-year production plans or its financial
results for the second quarter of the year. Models affected by the
shutdown include the new Cadillac XT5 crossover, which is built in
Spring Hill, and the new Chevy Cruze, manufactured in
Lordstown.
RBC Capital Markets analyst Joseph Spak wrote in a note that the
production shutdowns could help GM and other auto makers as
inventory levels have risen of late, though there could be some
negative impact on parts suppliers in the second quarter.
"We know Toyota and Nissan have taken downtime as well. We await
to see if others are impacted. But our view is that near-term
disruption could help alleviate some near-term elevated U.S.
inventory levels," Mr. Spak wrote.
Write to Gautham Nagesh at gautham.nagesh@wsj.com
(END) Dow Jones Newswires
April 22, 2016 12:45 ET (16:45 GMT)
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