General Motors to slash 14,700 jobs in USA and Canada

Nov 27, 2018, 00:45
General Motors to slash 14,700 jobs in USA and Canada

The US carmaker has also announced it will close three plants outside North America by the end of 2019.

GM jumped as much as 7.9 percent to US$38.75, the highest since July, as of 12:20 p.m.in NY trading. The Detroit-Hamtramck Assembly produces the Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and Chevrolet Volt. The Cruze compact auto will be discontinued in the USA market in 2019.

General Motors Canada will be announcing the closure of all operations in Oshawa, Canada on 26 November, multiple anonymous sources told CTV News Toronto.

GM's Oshawa plant assembles the Chevrolet Impala and Cadillac XTS and finishes Chevrolet Silverado and GMC Sierra trucks. But the automaking leader of the future may not be GM or one of its traditional rivals. The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1bn. The company offered buyouts to 18,000 white-collar workers in October, but hasn't said how many accepted.

Senator Rob Portman is urging GM to bring a new the production of another vehicle to the Lordstown plant.

Numerous cars that General Motors says it will cease producing were hailed as major break-throughs when introduced.

Canadian Prime Minister Justin Trudeau said he had spoken to Barra to express his "deep disappointment in the closure" of the plant in the Ontarian town of Oshawa.

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GM said the moves will save $6 billion in cash by the end of next year, including $4.5 billion in recurring annual cost reductions and a $1.5 billion reduction in capital spending.

"In contrast to times past..."

GM said it was ending Volt production because the vehicle was meant to be a bridge to fully electric cars when it was introduced about a decade ago.

GM is reportedly slashing 14,700 factory and white collar jobs in North America, and may close five factories.

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. At GM's Detroit headquarters on Monday, there were signs directing people to a "new hire orientation" meeting. The company said it is aiming to save $6.5 billion in "cost efficiencies" through 2018.

Both U.S. vehicle assembly plants scheduled to stop production next year now build slow-selling passenger cars.

Trump said Monday that he was unhappy about the Lordstown plant stopping production, and that GM should use the factory for another auto.

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A rule of thumb for the automotive industry is that if a plant is running below 80 percent of production capacity, it is losing money.

It was expected that GM needed to address underutilization of its plants. The automaker in June ended the second shift at its factory in Lordstown, Ohio, cutting 1,500 workers.

"Every time we have a problem with a point, I just put up a picture of a Chevrolet Impala", the USA president was reported to have said.

He hadn't previously paid attention to politics, but in July 2017 he went with his mom and aunt to a Trump rally in Youngstown, Ohio, where the president essentially promised to save his job.

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.

Bobbi Marsh, who has worked assembling the Chevrolet Cruze compact auto at the OH plant since 2008, said she can't understand why the factory might close given the strong economy.

Rivals Ford Motor Co and Fiat Chrysler Automobiles NV have both curtailed US auto production. Ford said in April it planned to stop building almost all cars in North America.

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