Struggling U.S. carmaker General Motors is reported to be planning to close most of its factories for as long as nine weeks during the upcoming summer season in the middle of this year.
Various news reports say the decision was made because the company is facing low demand and a growing inventory of unsold cars.
GM officials have yet to confirm the plant shutdowns. But the company has scheduled talks with union leaders Thursday about its immediate plans.
A GM spokesperson Wednesday said the company will miss a June first deadline to make a $1 billion loan payment to the government.
The treasury department lent GM more than $13 billion dollars under the condition that it have a massive restructuring plan in place by May 30. Failure to meet that deadline could force GM into bankruptcy.
Earlier Wednesday, U.S. Treasury Secretary Timothy Geithner said a global economic recovery is not possible until the U.S. starts to prosper again.
Geithner told the Washington Economic Club that the United States has a large responsibility for the global recession because as the world's largest economy, its reach is so extensive. He called on the world's other major economies to keep stabilizing their financial systems so that future economic growth is not dependent on the U.S. consumer.
Struggling U.S. carmaker General Motors is reported to be planning to close most of its factories for as long as nine weeks during the upcoming summer season in the middle of this year.
Various news reports say the decision was made because the company is facing low demand and a growing inventory of unsold cars.
GM officials have yet to confirm the plant shutdowns. But the company has scheduled talks with union leaders Thursday about its immediate plans.
A GM spokesperson said Wednesday the company will miss a June 1 deadline to make a $1 billion loan payment to the government, which could move GM another step closer to bankruptcy.
Some information for this report was provided by AFP, AP and Reuters.
