General Motors to Close Plants, Cut 30,000 Jobs

November 21, 2005 12:00 PM, EST

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eneral Motors Corp. plans to close nine North American plants and cut 30,000 jobs in an effort to trim costs, news services reported Monday.

The world's largest automaker, which also builds light- and medium-duty trucks, will idle or reduce operations at nine manufacturing sites and several non-manufacturing facilities, Chief Executive Officer Rick Wagoner said at a press conference in Detroit, Bloomberg reported.

GM said the closings will trim its annual costs by $7 billion by the end of 2006, Bloomberg said.

GM is making the cuts after it posted $4.8 billion in losses this year, from competition that has pushed its U.S. market share to 80-year lows, Bloomberg said. Ratings companies responded by cutting the automaker's debt to junk.

GM shares, which on Nov. 17 touched their lowest level since 1987, have fallen 40% this year. That is the most of any company in the Dow Jones Industrial Average as investors waited for Wagoner's job-cut plans, Bloomberg reported.