GM kills medium-duty trucks while opening new battery lab
Truck plant in Flint, Michigan will close as GM opens new battery lab in its home state
By Alex Ricciuti
June 9, 2009 1:59 PM
Filed Under: American, Corporate/Financial, General Motors, Industry, Production
GM has scrapped another division, this time eliminating its medium-duty truck business.
About 400 workers at the Flint Assembly plant where the Chevy Kodiak and GMC Topkick are produced will be either reassigned or offered buyouts to leave the company. The factory produced 22,000 vehicles last year. Production there will be shut down by the end of July.
The bankrupt Detroit automaker decided to shed the loss-making division after it could not find a buyer. GM had tried to sell the medium-duty division for four years.
"If you can sell it, great, but if you can't, it becomes another cash bleed," says Jim Hall, an automotive analyst at 2953 Analytics in the US, as quoted in the story.
At the same time, GM has unveiled its new Global Battery Systems Lab in its home state. The 33,000 sq-ft (3,065 m2) lab resides within GM's Technical Center in Warren, Michigan and will conduct research and development for batteries and related technology for use in all types of hybrid and electric vehicles that GM is developing. More than 1,000 engineers work at the lab, developing batteries for such models as the Chevy Volt.
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