General Motors Shuts Down Three North American Assembly Plants, Cuts 14,000 Jobs

27 November, 2018, 10:46 | Author: Frank Williams
  • GM to Close 8 Plants, Lay Off Close to 15,000 Workers

Factories in OH and MI will halt production and jobs will be cut across all of North America, CEO Mary Barra said.

So before heading to Mississipi for a campaign rally, Trump said he had expressed his displeasure to General Motors Chief Executive Mary Barra. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse.

Asked about the predictions of severe economic impacts caused by climate change, Trump said: "I don't believe it".

The salaried workforce restructuring includes cutting 15 percent of its 54,000 salaried employees in North America, including slashing global executives by 25 percent. "General Motors' decision today. will not go unchallenged by the UAW", said Terry Dittes, the union's vice president in charge of negotiations with GM.

GM is not the first to abandon much of its auto market.

General Motors workers leave the Oshawa General Motors plant in Oshawa, Ontario, on Monday. "Get a vehicle that is selling well and put it back in", Trump said.

GM's move marks the first rounds of United States plant closings since 2010, though the automaker has eliminated shifts and laid off workers at some United States plants since early 2017 - including at the Lordstown, Ohio, and Hamtramck, Michigan, plants now slated to be closed. GM has yet to say how many workers accepted buyouts, or if it's close to meeting the staff reduction goals it set to better withstand leaner times.

Many industry experts point to a stagnation in the gas-powered market as more drivers shift to autonomous and electric vehicles.

Not allocating product doesn't mean the plants will close, but it puts their future and the jobs of roughly 6,300 hourly and salaried factory employees-3,300 in the US and 3,000 in Canada-at risk heading into contract negotiations with the UAW in 2019 and Canadian union Unifor in 2020.

More news: Border Patrol Arrests 42 Migrants While Mexico Deports Others

Transmission plants at Warren, Michigan, and in Baltimore are also affected; as is the Oshawa plant in Ontario in Canada which will stop making the Impala, Cadillac XTS and 2018 full-size pickups.

Even with the higher spending on electric and autonomous vehicles, GM plans to reduce overall annual capital spending to$7 billion by 2020 from an average of $8.5 billion a year during the 2017-2019 period. Ford announced in April it would just about end all production of sedans in North America.

The Detroit-based company's shares surged on the plan, which includes abandoning some of its slower-selling sedan models.

Early reports indicated that GM's layoffs are the result of steel tariffs levied by the Trump administration in its fledgling trade wars with China, Canada, and the European Union, but GM says that no one factor led to the layoffs.

But its outlook is bleak after GM announced production of the Chevy Cruze would stop in March, halting work at the assembly plant that already had lost two shifts and 3,000 union jobs since the beginning of a year ago.

He said the decision to halt sales of the Chevrolet Cruze had "nothing to do with tariffs" but was because of poor sales.

GM sold almost 2.7 million vehicles in China through September, almost all of them built in China for the market. We tried to get his attention on this issue two years ago.

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pick-up truck and SUV sales rose 8.3 percent.

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