GM to Temporarily Close 20 Plants

On Friday, General Motors Corp. stated that it will temporarily close 20 of its factories across North America and reduce vehicle production while it tries adjust to the decline in automobile demands. The company will cut 250,000 vehicles from its production schedule for the first quarter of 2009. They normally produce 750,000 automobiles for that quarter. Many of the plants will be closed for the whole month of January and employees will be temporarily laid off and will receive part of their normal wages. They could be able to apply for state unemployment benefits. GM reported that its sales are down 41 percent for November and are down 22 percent for the first 11 months of 2008.

General Motors currently trying to obtain Government loans to be able to stay in business. The White House says that it might go into its $700 billion Wall Street Bailout fund to help GM and Chrysler. The entire automobile industry is having to make cuts due to the decline in the demand of automobiles.

Chrysler and Honda Vehicle Recalls

Chrysler has decided to recall almost 300,000 sport utility vehicles after there were problems with the vehicles ability to brake while driving uphill. They are also recalling more than 156,000 Jeep Grand Cherokees and Commander SUVs from the 2006-2007 model years, more than 90,000 2007 Jeep Wrangler SUVs, and about 50,000 2007 Dodge Nitro SUVs. They are also recalling 72,333 Dodge Avenger sedans and Chrysler Sebring convertibles from the 2008 model year for problems with the front door latches and locks.

Chrysler has received about 20 complaints of vehicles having a delay in braking when the drivers tried to stop after going uphill. There has been one crash and no injuries reported. To fix this problem, the computer connected to the antilock brake system will be reprogrammed.

Honda is recalling more than 180,000 Civics from the 2006-2007 model years to fix a wheel-bearing seal that could possibly leak and cause a wheel fall of the car. The seal where the antilock brake sensor mounts to the rear wheel bearing could allow moisture and salt to leak into the wheel bearing and cause corrosion, which could make the wheel fall off and cause a car crash. They have received two complaints relating to this problem. No injuries were reported.