The service and parts operations and powertrain facilities that will be affected include: The Lansing, MI Metal Center, which will cease production in 2006; the Pittsburgh Metal Center, which will close in 2007; and the parts distribution center in Portland, OR, which will cease operations in 2006.

Also affected by the restructuring program, the parts distribution center in St. Louis will terminate warehousing activities and will be converted to a collision center facility in 2006; the parts processing center in Ypsilanti, MI will cease operations in 2007; and one additional parts processing center, to be announced at a later date, will also cease operations in 2007. Finally, St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008; and the Flint, MI North 3800 engine facility, known as Factory 36, will cease production in 2008.

The closures will result in the loss of 30,000 jobs. Given the demographics of GM's workforce, the company says it plans to achieve much of the job reduction via attrition and early retirement programs. "These are difficult moves that will affect thousands of dedicated GM employees and families, as well as state and local governments," Wagoner said. "We will work our hardest to mitigate that impact."

Meanwhile, the company has further accelerated its efforts in structural cost reduction, raising the previously indicated $5 billion running rate cost reduction plan in North America to $6 billion by the end of 2006. In addition, GM continues to pursue its plans to target $1 billion in net material cost savings, which will result in an aggregate $7 billion in cost reduction by the end of 2006. "We are making steady and significant progress in implementing the plan to turn around our US business," Wagoner said.