General Motors agreed to spare two plants that had been targeted for closure and will resurrect them to make small cars and their metal parts, according to highlights of a tentative contract agreement with the UAW.
The union did not name the factories to be saved. One is an assembly plant to produce as many as 160,000 small or compact cars previously slated for production overseas, the UAW said in its highlight book promoting ratification of the concessionary agreement to its 61,000 GM members. The other plant would produce stampings for the small or compact cars.
GM had announced plans to close 16 plants and cut 21,000 union jobs by the end of next year. The assembly plant would be idled before it is reopened to make the small car, the highlight book said.
The agreement also calls on GM to keep on standby three additional assembly plants and a stamping plant slated for shutdown should U.S. sales volumes rebound quicker than currently forecasted.