General Motors and Chrysler, the two major US automobile giants, have both announced their latest plans. GM is temporarily shutting down 13 of its plants in North America while Chrysler is still pursuing one last chance of survival – looking for further governmental financial assistance.
GM's plant suspension will cut its Q1 and Q2 output by 190 thousand cars. But the shutdown of its plants will be scheduled at different times, "according to their respective inventories and market demand". Pontiac sedans are very likely to be suspended accompanied by a company staff downsizing.
Simultaneously, time is running out for Chrysler, which before April 30 will be required to submit a reorganization plan to the US government with the approval of its creditors, United Auto Workers (UAW) and Italian automaker Fiat, otherwise the company will face bankruptcy.
UAW announced on April 26 that the Union has achieved a compromise agreement with Chrysler, Fiat and the US Treasury, and the deal will pave the path for Chrysler's M&A talks with Fiat.
However, previous views have suggested that whether the negotiations end in success or not, the US Treasury will demand that Chrysler apply for bankruptcy protection, reflecting the US government's resolution to drag the deficit-stricken auto company out of the red.
For more information, please consult the Chinese coverage at:
http://www.china-cbn.com/s/n/000005/20090428/000000113859.shtml
(China.org.cn by Maverick Chen, April 28, 2009)
