General Motors announced today that it plans to close five North American plants and cut 15 percent of its salaried workforce in response to market changes. Do they really believe Americans will buy products from a company that closes four plants in the United States, while maintaining the largest number of factories in Mexico.five of them.of any US carmaker and with more employees in Mexico than any other carmaker.
GM sold almost 2.7 million vehicles in China through September, almost all of them built in China for the market. What happens to those plants will be discussed during contract talks with the United Auto Workers union next year.
The assembly plants pegged for closure are Oshawa Assembly in Oshawa, Ontario, Canada, Detroit-Hamtramck Assembly in Detroit, and Lordstown Assembly in Warren, Ohio. Also affected are transmission factories in Warren, Mich., as well as Baltimore.
About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck plants.
That may have played a role in the decision to lay off what amounts to 8 percent of GM's global workforce.
GM is cutting more than 6,300 hourly and salaried workers at its plants and 15 percent of the salaried workers in North America for a total of more than 14,000.
GM said it will take pre-tax charges of $3bn to $3.8bn to pay for the cutbacks, but expects the actions to improve annual free cash flow by $6bn by the end of 2020.
"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future", GM Chairman and CEO Mary Barra, who was a member of Trump's now-defunct economic advisory council, said in a statement.More news: Nooses Found by Mississippi Capitol before Senate Runoff
Earlier this year, the second and third shifts at GM Lordstown were cut with employees being offered buyouts.
GM's unions aren't happy.
The company, which was incorporated in 1908, came back from the brink after its 2009 bankruptcy and federal bailout, returning to profitability in 2010.
Langley said the announced elimination of the passenger cars wasn't surprising, but the immediacy of canceling the cars "so quickly is a new phenomenon". The cuts are a setback for President Trump who said previous year in Ohio, "We are going to get those jobs coming back and we are going to fill up those factories or rip 'em down and build brand new ones". But this huge tax break has failed to save thousands of GM workers from cruel layoffs.
If GM does follow through by closing the plant, there may be only one thing left to do: State-run vehicle company. The Detroit-Hamtramck facility is GM's last in the city, and the Lordstown plant in OH was one of its biggest.
Barra said tariffs on imported aluminum and steel have hit the company, but she stopped short of saying they had anything to do with the restructuring.
It was a "shot in the gut", said Green of the announcement, which came to him after a 6:30 a.m. phone call requesting his presence for a 9 a.m. meeting Monday. And it could affect the re-election prospects for Mr. Trump, who won two years ago by capturing both states and has made big promises to those communities about his policies creating a resurgent American auto industry.