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GM to close plant in Ontario, eliminating 2,500 jobs

27 November, 2018, 07:15 | Author: Shawna Walton
  • GM to slash 14,700 jobs in North America

"This callous decision by GM to reduce or cease operations in American plants, while opening or increasing production in Mexico and China plants for sales to American consumers, is, in its implementation, profoundly damaging to our American workforce", new UAW GM Vice President Terry Dittes said.

In an investor call, Barra said some GM cars would no longer be available in North America, including the Chevrolet Cruze.

In October, almost 65% of new vehicles sold in America were trucks or SUVs.

GM will also prioritize electric vehicle development and concentrate on five models that account for three-quarters of the automaker's sales.

"We fought together to keep GM afloat and the American taxpayers bailed them out when they were on the verge of bankruptcy", Ryan said in a statement.

"We estimate sedans operate at a significant loss, hence the need for classic restructuring", he wrote.

General Motors is poised to close factories in Michigan, Ohio, Maryland and Canada, and slash 15 percent of its salaried workforce in a sweeping cost-cutting plan created to boost its profits. Toyota Motor Corp. also has discussed cutting costs, even though it's building a new assembly plant in Alabama. The Cruze compact vehicle will be discontinued in the USA market in 2019.

Rivals Ford and Fiat Chrysler have both curtailed USA auto production.

GM in recent years has worked to slice costs, with a goal of $6.5 billion in cuts this year alone.

She said the firm was making the changes "to get in front of it while the company is strong and while the economy is strong".

The reductions could ripple through auto parts suppliers such as Aptiv and Magna International, Michaeli said.

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, the automaker's autonomous vehicle unit in San Francisco. The company will instead concentrate on trucks and SUVs, and will double its investment in electric and autonomous vehicles.

The moves follow rising costs and slowing auto sales and come as the United States carmaker focuses on its line-up of trucks, electric and self-driving vehicles.

The company says 5,901 hourly employees and 804 salaried employees work at these plants.

If nothing else, losing $1 billion to higher import taxes may have forced GM to take more dramatic steps more quickly than otherwise would have.

Meanwhile, GM's plant in Oshawa, Ontario, will stop making the Impala, Cadillac XTS and 2018 full-size pickups in the fourth quarter of next year.

"If import tariffs on automobiles are not tailored to specifically advance the objectives of the economic and national security goals of the United States, increased import tariffs could lead to a smaller GM, a reduced presence at home and overseas for this iconic American company, and riskless not more U.S.jobs", GM said. 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.

Plants in Baltimore, Maryland, and Warren, Michigan, assembling powertrain components will have no products assigned to them after 2019 and are at risk of closure, GM said.

But the next automaking leader may not be GM or one of its traditional rivals. He said he told the company that the US has done a lot for GM and that if its cars aren't selling, the company needs to produce ones that will.

According to a WKBN-TV report, production of the Chevy Cruze at the Lordstown plant will stop in March.

GM said its Oshawa Assembly plant in Oshawa, Ontario, its Detroit-Hamtramck Assembly plant in MI, and its Lordstown Assembly plant in Warren, Ohio, would be "unallocated" by the end of 2019 as it reorganized its manufacturing capacity to focus on electric and self-driving cars and in anticipation of a downturn in the auto market.

"While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019", read the statement.

Workers ― and others in the city ― held their breath just a few years ago when it appeared the plant might close.

GM's stock price surged on the heels of the announcement, closing at 37.65, up almost 5 percent on the day.

In Canada, Prime Minster Justin Trudeau expressed "deep disappointment" with the plant closure.

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