GM slashing 15% of N. American jobs, discontinuing several vehicle models
- Author: Anthony Vega Nov 27, 2018,
Nov 27, 2018, 0:46
LORDSTOWN, Ohio- The General Motors plant in Lordstown plans to close early next year, sources told the FOX 8 I-Team on Monday. GM had been expected to close plants because of struggling sales.
Production reached its peak in the 1980s after a almost $8-billion investment GM's Canadian manufacturing facilities, making Oshawa "Autoplex" one of the biggest assembly plants in the world, boasting a workforce of over 40,000.
Interested in General Motors? In all, GM plans to cut 10,000 jobs in North America.
The company said the changes were the results of shifts in consumer demand, with SUV and pickup truck sales increasing while sedan sales stall.
As Michigan Radio reported, Detroit Mayor Mike Duggan called the news "troubling" and said that the union and local officials are "working together to come up with a solution that works for GM and the employees".
"This country has also invested a lot in General Motors", he added, referring to the 2009 bailout that saw the federal and provincial governments invest billions in GM and Chrysler to keep the companies afloat. The automaker's other Canadian facilities - in St. Catharines, Ont. and Ingersoll, Ont. - are not affected by the announcement.
The BBC says GM Will Shutter Eight Plants. "We're going to get those jobs coming back, and we're going to fill up those factories or rip them down and build brand-new ones". 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.
Wolikow said he's got three kids, and that he and his fiancee, who works at a Cracker Barrel, are racking up credit card debt just to pay for basic living expenses.
One man said the union had told workers at the plant to go home and would be speaking with employees at an afternoon meeting.
"They're gone; they're done".
"You will see us have new employees joining the company as others leave the company", Barra said. A condition of that loan was that GM would not reduce its manufacturing operations in Canada for six years.
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.
A person briefed on the matter told The Associated Press that the plant being shuttered in Canada is just the beginning as GM prepares for the next economic downturn, shifting trade agreements under the Trump administration, and potential tariffs on imported automobiles.
GM also said it will end operations at two unnamed plants outside North America next year, in addition to a previously announced shutdown in South Korea.
While the company has said that it believes tariffs on steel and aluminum will add about $1 billion in costs over the next year, there is little sign that the layoffs and closures are related to the tariffs.
GM in recent years has worked to slice costs, with a goal of $6.5 billion in cuts this year alone. GM expects to spend $1 billion on Cruise this year to build the vehicle of the future. Two of those five were among the plants earmarked for closure in Monday's announcement.
Production began in 1953 and at its peak in the 1980s, the plant employed roughly 23,000 people.