DETROIT (AP) -- General Motors Corp.'s top manufacturing executive says the company will reduce its factory capacity to meet the requirements of its $13.4 billion in federal loans, but he would not say if further plant closures are coming.
Gary Cowger, vice president of global manufacturing and labor, said the company must reduce parts stamping, engine and transmission factory capacity to match a slow U.S. market and come in line with four pickup truck and sport utility vehicle plant closures announced last year. Assembly plant reductions also are possible.
"If you look at our viability plan, we have to get our capacity right-sized, so I would say we would continue to look at locations for excess capacity and address that as we go forward," Cowger said Monday at the North American International Auto Show in Detroit.
He said the company has not made any announcements beyond assembly plant closures announced last year in Oshawa, Ontario; Toluca, Mexico; Janesville, Wis.; and Moraine, Ohio. It also announced the closure of a stamping plant near Grand Rapids, Mich.
GM has to determine if the market shift down to a 10.5 million annual U.S. sales rate this year is permanent or if the market will recover later in the year to 12 million or more.
"As long as it's short-term you'll adjust capacity more by taking out weeks and removing shifts and rerating (assembly) line speeds. If it's a permanent shift in capacity, that's when you have to look at adjusting the amount of facilities that you have," Cowger said.