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GM closing two plants; 2,700 workers will lose jobs

By Rocky staff and wire reports

Published October 14, 2008 at 12:05 a.m.
Updated October 14, 2008 at 1:06 a.m.

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General Motors' efforts to hoard cash and outlast a prolonged economic slump claimed the jobs of more than 2,700 workers Monday as the automaker announced the demise of factories in Michigan and Wisconsin.

GM said it would close a metal stamping factory in the Grand Rapids suburb of Wyoming by the end of next year, and it also sped up the closure of its Janesville, Wis., sport utility vehicle plant, with most of that facility shuttering Dec. 23.

NBA CUTS JOBS The NBA is eliminating about 80 jobs in the United States, or about 9 percent of its American work force, the first major U.S. sports league to announce layoffs because of the worldwide economic turmoil.

Season tickets are being renewed at less than 80 percent this year, lower than the historic rate of just more than 80 percent, Commissioner David Stern said.

BID WITHDRAWN Waste Management Inc., the nation's largest garbage hauler, on Monday withdrew its $6.73 billion bid to acquire smaller rival Republic Services, saying the move wouldn't be prudent given current financial market turmoil.

The announcement ends a three-month takeover struggle that began in July when Houston-based Waste Management first offered to buy rival Republic Services Inc., the nation's No. 3 trash hauler, and continued when Waste Management sweetened its takeover bid in August.

AT&T DEAL AT&T Inc., fighting cable companies for customers, will sell its TV and Internet services at Wal-Mart, Circuit City and Best Buy stores.

The U-verse service will be available at more than 900 stores this month in 13 states including California, Connecticut and Texas, AT&T spokeswoman Jeannie Hornung said.

AT&T, the biggest U.S. phone company, is spending as much as $7 billion to revamp its network in an effort to keep subscribers from switching to Comcast Corp. and Time Warner Cable Inc. Dallas-based AT&T had 549,000 TV subscribers at the end of June and forecast 1 million by the end of 2008.

MOVIE DISTRIBUTION Steven Spielberg chose General Electric Co.'s Universal Pictures to distribute films from DreamWorks SKG following his departure from Viacom Inc.'s Paramount Pictures.

Universal will distribute about six DreamWorks films annually under the seven-year agreement, the two companies said Monday.

AUTO LOANS GMAC LLC, the consumer finance arm of General Motors Corp., will limit auto loans to customers with credit scores of at least 700, making it harder for some customers to buy a car or truck.

GMAC also raised by 0.75 percent the rate it charges auto dealers for making loans that aren't part of special incentive programs, the Detroit-based company said Monday.

MICROSOFT Microsoft Corp., the world's biggest software maker, introduced a new version of its Silverlight online video software, escalating an attack on Adobe Systems Inc.'s market-leading Flash program. Silverlight 2 will be available to download today.

BID DROPPED United Technologies Corp. on Monday dropped its unsolicited $2.6 billion bid to buy ATM manufacturer Diebold Inc., which had frustrated UTC because it wouldn't discuss the offer and delayed releasing its financial information.

Diebold's chairman said the company is encouraged about its future, even as its stock remained far less than what UTC had offered.

HONDA FACTORY Honda Motor Co. says it will convert one of the two assembly lines at its Lincoln, Ala., factory so it can make V-6-powered Honda Accords by the middle of next year.

The plant now makes the Odyssey minivan and Pilot sport utility vehicle. Company spokesman Ed Miller says Honda will cut 8,000 vehicles from production at the plant in November because sales have softened.

APPLE RALLIES Apple Inc. rallied the most in nine years after its rating was raised by Sanford C. Bernstein & Co.'s top-rated analyst, who said the risk-reward balance is "compelling" and that the shares are "overly discounted" after plunging 46 percent in two months.

The Cupertino, Calif.-based company gained 14 percent to $110.26 in New York Stock Exchange composite trading.

The maker of Macintosh computers and the iPhone was upgraded to "outperform" from "market perform" by Toni Sacconaghi, the top-ranked computer analyst by Institutional Investor magazine. He cut his share-price forecast 23 percent to $135.

SMITH BARNEY Citigroup Inc., the second-biggest U.S. broker by number of advisers, is closing 20 Smith Barney branches after posting three straight quarterly losses.

The bank, the biggest in the U.S. by assets, will also consolidate 18 outlets within its 670-branch Smith Barney system, according to an internal memo. Spokesman Alexander Samuelson confirmed the contents of the memo and declined to say where the closed offices are located.

THIS JUST IN ...

* Michael O'Donnell, chairman of Wheeler Trigg Kennedy, was named chairman of the Colorado State Committee of the American College of Trial Lawyers.

* First Community Bank added Lianne Shepherd as vice president of private banking for the Boulder market.

* Tim Pownell joined Credo Petroleum Corp. as president and chief operating officer.

* Peter Hynes, president of Urbitecture Inc., joined the Colorado Housing Assistance Corp. board of directors.

* Panera Bread opened its 23rd Colorado location in Sheridan at the River Point Parkway Shopping Center.

* Babolat named Seth McKinley to sports marketing manager for the Americas and Australia and added Jackie Carleton and Steve Strecker to its USA sports marketing team.

* Superior Products Home Improvements was awarded two first-place awards and one honorable mention in the 2008 Colorado Awards for Remodeling Excellence.

* The Colorado State Chapter of the American Institute of Architects presented Studio B Architects with three architectural design awards.

* The Berthoud Chamber of Commerce will host Mark Weaver of Employer Solutions Group presenting "The Growing Burden of Employment Law and Regulation: Ballot Issues Coming Our Way" at Guaranty Bank in Berthoud on Oct. 23. Information: berthoudcolorado.com.

* 104 West Partners promoted Courtney Walsh to account manager and hired Kim Schloss as account associate.

* The Envision Group named Sara Bhan traffic coordinator.

* Colorado-based Ehrhardt Keefe Steiner & Hottman PC named Douglas P. Reeb and Douglas M. Slaybaugh principals in audit service and Brent S. Hendricks principal in tax service.

* The National Ski Patrol named Opedix Wellness Gear as an official supplier.

* Ulteig Engineers Inc. opened an office at 9777 Mount Pyramid Court in Englewood.

*Arapahoe/Douglas Mental Health Network's Child and Family Services and Counseling and Psychiatric Practice opened a new location at 155 Inverness Drive in Araphoe County.

* Smart Energy Living Alliance, Energy Star and Comfort Air Distributing will host the third annual Energy Star Summit on Dec. 1-2 at the Hyatt Regency in the Denver Tech Center. Information: e-star.com/ summit

* Children's Hospital named Kelly Johnson chief nursing officer.

Comments

  • October 15, 2008

    3:55 a.m.

    Suggest removal

    HighwayRobbery writes:

    I feel very bad for the families affected by these closings. Seems American's are losing jobs and homes at an alarming rate. I wonder when we will wake up and smell the coffee and work toward becoming an energy independent country. What short attention spans we have. When gas is scarce we conserve and look to produce, buy and drive energy effecient cars. When the oil is flowing cheap we forget, we have been there before. I am reading a newly released book by Jeff Wilson called the Manhattan Project of 2009. It should be a required read for all members of our government.