LCA Closing Costly for GM

By: Associated Press
By: Associated Press

General Motors will take a pre-tax charge of $121 million in the first quarter for the closure of its Lansing Car Assembly plant.

GM made the announcement in a filing with the US Securities and Exchange Commission.

GM announced last week that it was closing the plant and laying off nearly 3,000 hourly workers. The plant makes the Pontiac Grand Am and the Chevrolet Classic, both of which are being discontinued.

GM also said it will pay an estimated $20 million pre-tax a month in compensation and other benefits for laid-off employees until they're redeployed or retired.

The company also expects to spend between $21 million and $25 million pre-tax on environmental and other exit costs.

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