General Motors to close seven factories, axe 15% of workforce

General Motors to close seven factories, axe 15% of workforce

A portion of that statement reads, "Today, GM is continuing to take proactive steps to improve overall business performance including the reorganization of its global product development staffs, the realignment of its manufacturing capacity and a reduction of salaried workforce". The company is reinvesting money away from cars that once dominated America's roadways and putting it into technology it believes will power its future. In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs.

Auto sales have slowed in both China and the United States, two of GM's most important markets.

GM expects to record pretax charges of $3 billion to $3.8 billion related to these actions, including up to $1.8 billion of noncash accelerated asset write-downs and pension charges, and up to $2 billion of employee-related and other cash-based expenses.

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.

At the factories, 3,000 workers could lose jobs in Canada and another 3,600 in the US. The company also has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion. It would not say how many have accepted the buyouts, but it was short of the company's target because GM said there will be white-collar layoffs.

GM is not the first to abandon much of its vehicle market. The affected facilities build cars that will not be sold in the United States after next year.

Barra on Monday portrayed the decision to put five North American factories on notice for potential closure and cut almost 15,000 jobs as necessary to keep the company strong as it plows money into new technology and new businesses such as robo-taxi services.

Canadian Innovation Minister Navdeep Bains said that GM "only made this official announcement to us yesterday". "They better put something else in", Mr Trump said.

Scheer says the closure is devastating to thousands of families in southern Ontario and the government needs to immediately explain how it will help them and protect other manufacturing jobs in Ontario.

That's cold comfort for Darryl Donnithorne 38, who said he was laid off by GM when it closed its Oshawa truck plant in 2008, He just got hired back a couple of months ago to install windshields on the pickups sent from Indiana. "I'll keep coming until they tell me not to come".

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Most of the factories to be affected by GM's restructuring build cars that won't be sold in the US after next year.

The Auto Union is precisely one of GM's problems.

GM says the Detroit-Hamtramck Assembly, Lordstown Assembly, Baltimore Operations, and Warren Transmission Operations "will be unallocated in 2019".

In February, the company said it would close one plant in South Korea.

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

"Everything is up in the air", she said. In the 1980s the three plants produced as many as 730,000 cars and trucks a year, and employed about 23,000 people.

Barra is cutting staff from operations that make conventional cars and hiring people who can design electric cars or add software prowess to GM Cruise LLC, the automaker's autonomous vehicle unit in San Francisco.

GM said it will shift more investment to electric and autonomous vehicles.

CEO Mary Barra is seeking to reposition GM for a future defined by self-driving cars, ride-sharing networks and electric vehicles. 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.

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