GM plans 10,000 job cuts, five plant shutdowns in North America

Adjust Comment Print

The Detroit carmaker then opened its own plant in 1953, with production boosted by the 1965 auto pact that allowed cars to be shipped more easily to the USA market.

America's biggest vehicle maker said the move was in response to changing customer tastes, with SUVs and pick-up trucks favoured over sedans that once ruled the country's roads.

As recently as 2012, passenger cars made up more than 50 percent of all US new vehicle sales.

GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors.

In that AP report, Lordstown was singled out as a "possible target" for GM, citing the need to reduce personnel and the uncertainty of whether enough employees took a proffered buyout from the company.

General Motors said it will cut almost 15,000 jobs - a combination of factory and office roles - and put five plants on the chopping block as it contends with shifting consumer preferences and slowing sales.

The company says 5,901 hourly employees and 804 salaried employees work at these plants.

GM isn't the first to abandon much of its auto market. The affected facilities build cars that will not be sold in the U.S. after next year. The official spoke on condition of anonymity because they were not authorized to talk publicly ahead of the announcement. All the threats from the White House won't change the economic landscape that the Trump administration has helped create, one that is rockier than ever for American manufacturers and the people they employ.

"They say the Chevy Cruze is not selling well", Mr. Trump told reporters, recounting his conversation with Ms. Barra.

Trump said he'd been told that the Chevrolet Cruz model was failing to sell, "but hopefully she's going to come back and put" a different model in.

Manchester United set to count their loss on Pogba
The Eagles are desperate for points to improve on their standing on Premier League log to avoid the drop to the Championship. Mourinho accused the quartet of lacking maturity and Ferdinand believes he was wrong to publicly question his own players.

Four factories in the US and one in Canada could be shuttered by the end of 2019 if the automaker and its unions don't come up with an agreement to allocate more work to those facilities, GM said in a statement Monday. GM says it will allocate future products to fewer plants next year amid "changing customer preferences in the USA and in response to market-related volume declines in cars".

The layoffs and buyouts will cost an estimated $2 billion, with many workers protected by union contracts through the United Auto Workers and the union Unifor in Canada.

But the automaking leader of the future may not be GM or one of its traditional rivals.

GM is also closing the Detroit-Hamtramck Assembly plant in Detroit and the Lordstown Assembly in Warren, Ohio in 2019.

The company already had announced plans to cease operations at its Gunsan, South Korea plant.

"I can't believe our president would allow this to happen", she said Monday.

Overall GM said the shake-up would lead to cost savings of around £4.7 billion by 2020. In the 1980s the three plants produced as many as 730,000 cars and trucks a year, and employed about 23,000 people.

The announcement is the biggest restructuring in North America for GM since its bankruptcy a decade ago.

Many of those who will lose jobs are now working on conventional cars with internal combustion engines.

The company, which is shifting its focus to electric and autonomous vehicles, has been cutting jobs to deal with plunging auto sales in North America and has been debating for months how to address shrinking auto demand.

Comments