Spartan Echo

Section: News

RICHMOND, Va. (AP) - General Motors will close its only manufacturing operation in Virginia to cut costs as the automaker operates under bankruptcy protection.

GM spokesman John C. Raut said the company told workers Monday, June 1 that the Spotsylvania County plant will close in December 2010 or sooner, depending on demand. The plant produces torque converter clutches for automatic transmissions.

Raut said the plant employs 67 hourly and 14 salaried workers. About 300 were employed there about four years ago at the plant, which opened in 1979.

A telephone call Monday, June 1 to the office of United Auto Workers Local 2123, which represents the plant's hourly workers, was answered by a recording indicating that the voice mailbox was full.

GM invested in about $3 million in new equipment there less than two years ago, according to Russell Seymour, Spotsylvania's economic development director.

The 242,000-square-foot plant is one of nine plant closures that GM announced Monday.

Before the plant closes, production of the six-speed clutch will move to GM's Baltimore transmission plant, Raut said.

GM had planned to temporarily shut down the Spotsylvania facility June 1 through July 12, but it will operate this week because of increased demand for one of its products, Raut said.

County economic-development officials plan to work with the Virginia Employment Commission to help workers find jobs, preferably in the area, Seymour said.

The automaker owns the building and 23 acres of land, property the county assessed at $6.4 million in 2008. It paid about $39,700 in real estate taxes last year, according to county records.



Copyright 2009 The Associated Press.

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