General Motors Re-Opens Factories After Idle Shutdown, Employees Can Come Back Now
By Jane Reed | May 10, 2016 08:27 AM EDT
For two weeks, General Motors sites in the United States and also in Canada were shut down after a report emerged that there was a shortage of important automaking parts. Three factories in the United States were closed down and just one in Canada.
Last month, General Motors factories in Ohio, Tennessee, Ontario and Kansas were scheduled to be shut down in idle mode for a period of two weeks because Japan was not able to supply key automaking parts after a major earthquake hit the country. General Motors was not the only company affected. Toyota and Nissan were also forced to shut down their assembly plants in Japan because of the factory damages sustained during the calamity. Now, the period of idling is over and General Motors is resuming operations this week. All four factories in the United States and Canada are set to restart on Monday, according to the Fool.
Unions associated with the company were advised that the supply shortage were the "electrical parts" component, as told by Detroit News. These electrical parts affect particular vehicles that General Motors produce. Namely, the Cadillac XTS and XT5, the Buick LaCrosse and Regal, the GMC Acadia, and the Chevrolet Cruze, Equinox, Impala, and Malibu. GM has announced on April 22nd that the company didn't expect a "material impact" when it comes to its full-year production plans or second quarter financial results. The company made it clear that the shut-down was not demand related at all.
The Fool reports that General Motors is confident that the company will be able to make up for its lost production time. Since the sites have restarted on Monday, employees have been working their usual hours as business resumes as usual. The company expects to be on track for another strong quarter in the North American region.
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