GM to slash jobs and close 8 plants

27 November, 2018, 07:18 | Author: Dave Hampton
  • GM to slash 14,700 jobs in North America

It is unknown if any IN employees will be affected by the workforce reduction.

GM sold almost 2.7 million vehicles in China through September, almost all of them built in China for the market. Sales of the compact auto were down 27 percent through September, GM said.

Ford, who is scheduled to address the issue in a media availability later Monday, expressed his concerns for the well being not only of GM workers, but the thousands employed in the broader supply change and also in local businesses that depend on these customers. Some will take buyouts while others will be laid off.

America's largest vehicle maker said some workers would transfer to SUV and truck factories, which are increasing their output because of growing demand. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.

GM recently offered buyouts to 18,000 workers.

The company is also closing a Canadian plant at the cost of 2,500 jobs.

Some social media users urged to boycott GM's cars in response.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed USA auto production.

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GM plans to lay off about 6,000 factory workers.

GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," Barra told reporters.

OH politicians are also responding to the announcement.Arno Hill, the mayor of Lordstown, told NPR that he received a call from GM to inform him about five minutes before the news was released to the public.

"We're going to fill up those factories or rip them down and build new ones", he added. "I said 'Well, then get a vehicle that is selling well and put it back in.' So I think you're going to see something else happen there".

The U.S. plants are in places that have been economically devastated by job losses and pressure on wages for decades, which helped lead to the 2016 election of Donald Trump as U.S. president. At a rally in Youngstown in July 2017, the president said of manufacturing jobs that the state had lost over the years: "They're all coming back".

Though the plant, once one of the largest vehicle manufacturing facilities in the world, has curbed production dramatically in recent years, the news still came as a shock to the many workers filing into the facility.

The biggest USA autoworker union vowed to fight GM's plans.

GM said it will close three North American auto assembly plants next year: the Oshawa plant in Ontario, Canada; Hamtramck in Detroit, Michigan and Lordstown in Warren, Ohio.

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

Let's start in the U.S. If GM wants to close those OH and MI plants, it can't just lock the doors tomorrow and throw the keys away.

"Everything is up in the air", she said. I spend more time around them than my own family.

Ohio Senator Sherrod Brown also released a statement, calling the decision "shameful". But sales are starting to slip in China and North America, two of GM's biggest and most important markets.

Barra is reducing 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 is axing several of its traditional sedan lines to concentrate on electric and autonomous vehicles like the Chevrolet Bolt. It will also stop building models assembled at those plants, including the Chevrolet Cruze, the Cadillac CT6 and the Buick LaCrosse. The Lordstown plant makes the Chevy Cruze.

In addition, GM will close two U.S. propulsion plants - which produce batteries and transmissions - in Baltimore, Maryland and Warren, Michigan, as well two unidentified plants outside of North America.

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