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General Motors To Lay Off Nearly 15,000 Workers, Close Plants

27 November 2018
General Motors To Lay Off Nearly 15,000 Workers, Close Plants

GM said its slimmed down production plan would allow it to share technology across all of its vehicles and reduce the amount of time and workers it takes to build cars. "In the meantime, we've set up a jobs center to help employees find new work as quickly as possible", he said in the statement.

General Motors is to lay off 14,000 workers in North America and put five factories up for potential closure as it stops making some of its unpopular cars.

We are also asking the federal government to work with their USA counterparts to remove all tariffs so that impacted auto parts suppliers can remain competitive after the Oshawa Assembly Plant closes its doors. In 2012, traditional passenger cars comprised over 50% of vehicle sales in the US, but during the first nine months of 2018, that number decreased to 31%.

General Motors Canada will announce on Monday that it's closing its plant in Oshawa, Ont., in a move that will affect thousands of jobs in the city east of Toronto, The Canadian Press has learned.

The official spoke on condition of anonymity because the announcement hasn't been made public.

GM Chairman and CEO Mary Barra said the company is aiming to cut executive positions by 25 percent, as part of its overall push to cut it workforce.

Detroit-Hamtramck now builds the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, Cadillac CT6. The company offered buyouts to 18,000 white-collar workers in October, but hasn't said how many accepted.

The restructuring reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks.

Altogether, GM has five vehicle factories with plenty of unused capacity in Kansas City, Kansas; Lordstown; and Detroit-Hamtramck, Lansing, and Orion Township, Michigan.

Members of Unifor, the union representing the workers of Oshawa's General Motors vehicle assembly plant, parked their cars to block the entrance to the plant, Ont., Monday Nov 26, 2018. The company has invested in newer architectures for trucks and SUVs so it can cut capital spending while still raising investment in autonomous and electric vehicles. The automaker intends to close the plant in December, 2019.

These include workers at assembly facilities in Detroit; Warren, Ohio; and Oshawa, Ontario, Canada; as well as at propulsion plants in White Marsh, Maryland; and Warren, Michigan.

On top of the previously announced closure of the assembly plant in Gunsan, Korea, GM will also cease the operations of two additional plants outside North America by the end of next year. GM said the cuts will boost automotive free cash flow by US$6 billion by the end of 2020 and result in one-time charges of up to US$3.8 billion in the fourth quarter of this year and first quarter of 2019. Ohio Gov. John Kasich called it "painful to see this happen to the plant's workers", noting the plant had been working with GM for more than 50 years.

The cuts go all the way to the top, as GM plans to cut a quarter of its executive team in an effort to streamline operations and maintain profitability. "The ship has already left the dock", he said.

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

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

He noted the several billions of dollars in loans and support for the sector from the Canadian and Ontario governments in 2009, while lamenting the hardship facing workers after the Oshawa plant closes.