JOC Staff | Jun 01, 2009 8:06PM EDT
General Motors will close three parts and warehousing centers as the automaker begins to restructure logistics operations as part of its government-led reorganization, the company announced on the heels of its bankruptcy filing Monday.
The company said it would close distribution centers in the Boston, Columbus, Ohio, and Jacksonville, Fla., areas by Dec. 31.
The shutdowns were not part of the original restructuring plan at GM, but the company that was long the world’s largest automaker is closing 14 manufacturing plants and thousands of dealerships in its bid to get smaller and recover financial stability.
Some GM parts suppliers already have filed for Chapter 11 bankruptcy protection, and the decision to consolidate distribution operations reflects decisions that will sharply pare back GM’s extensive supply chain.
“As GM strengthens its after-sales business, we’re aggressively pursuing strategies that allow us to continue fast parts delivery to our dealers and distributors, and improve our warehouse capacity utilization,” said Kevin W. Williams, vice president and general manager for service and parts operations at GM North America.
GM said the distribution at the sites would be handled at other facilities, bringing overall network “capacity levels that are better aligned with current market demand.”
