GM to reopen factory shut by parts shortage

By Peter Valdes-Dapena, senior writer


NEW YORK (CNNMoney) -- General Motors is reopening its truck plant in Shreveport La. which was closed due to parts shortages caused by the Japan earthquake.

Work will begin again at the plant, which was closed on March 21, on Monday.

2009_gmc_canyon.03.jpg
GM's Shreveport plant makes the GMC Canyon.

GM also called back 59 workers who had been laid off at GM's Tonawanda, NY, engine plant.

Those workers had been making engines for the Chevrolet Colorado and GMC Canyon mid-sized trucks had been laid off on the same day the Shreeveport factory was shut.

Like many automakers, GM sources some of its parts from Japan.

GM declined to say, at the time, what part or parts had caused the shutdown.

The automaker later shut down an engine plant in New York state that supplied engines to the Shreveport factory.

Japan was hit by a devastating tsunami on March 11 after one of the largest earthquakes ever recorded struck off the island nation's coastline.

Since then, Japanese automakers have had to close factories in the crippled nation. Other automakers have also experienced supply issues. Ford Motor Co. has had to restrict the use of certain red and black paints on its cars because a Japanese supplier could no longer supply a paint ingredient.

"Like all global auto makers, we will continue to follow the events in Japan closely to determine the business impact," GM said in its statement announcing the reopening.

Analysts expect auto prices to rise in the coming weeks due to shortages of popular models. To top of page

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