GM To Close Janesville, Wisconsin SUV Plant

General Motors Corp. said recently it will close its Janesville, WI, truck plant, the auto maker's 2nd move recently to accelerate production cuts rolled out this summer. The Janesville factory, which makes full-size SUVs such as the Chevrolet Suburban, was 1 of four North American factories slated to close by 2010. GM told Janesville workers recently that production will end soon, a GM spokesman said. The plant employs 1,200. Another SUV plant, in Moraine, OH, also will close too. Dramatically reduced demand for SUVs led GM to close the plants more quickly than initially anticipated. The auto maker is scrambling to pare losses as U.S. sales slip to lows unseen since the early 1990s. Matters have only worsened for GM since June when the auto maker said it intended to close the truck factories. Factories in Oshawa, Ontario, and Toluca, Mexico, also are slated to close. Turmoil in the credit markets has made it difficult for consumers to finance vehicles, further cutting into sales. Meantime, GM's all but cut off from capital markets, unable to borrow money or sell assets to raise cash. The auto maker's burning through an estimated $1B a month. The extent of GM's liquidity problems will become more clear later this month when the company announces 3rd-Q financial results. GM's plans so far call for slashing North American truck capacity in response to sinking demand for pickups and SUVs as consumers react to jog fuel prices. GM said it believes the shift away from trucks, especially large SUVs, is permanent and that demand will remain lower even after the economy rebounds. The auto maker's expected to announce further downsizing soon in its stamping and powertrain operations.