Published: Tue, November 27, 2018
World News | By Sandy Lane

GM to Close 8 Plants, Lay Off Close to 15,000 Workers

GM to Close 8 Plants, Lay Off Close to 15,000 Workers

GM plans to halt production next year at three assembly plants - Lordstown, Ohio, Hamtramck, Michigan, and Oshawa, Ontario.

Prime Minister Justin Trudeau says he is deeply disappointed General Motors is closing its Oshawa assembly plant and will do everything possible to help workers who will lose their jobs. Bains said "all options are on the table" for GM employees. Some US workers would transfer to truck and SUV plants where GM is increasing output, the company said. The automaker intends to close the plant in December, 2019.

GM is also dealing with some higher costs associated with tariffs on imported steel and aluminum, which has raised its commodity costs by about $300 million in the third quarter and could raise costs by $1 billion next year.

Trudeau asked the provincial government to use what tools it has to help transition the community, sources said. The proposal boosts regional content of tariff-free automobiles to 75 per cent and requires 40 per cent of a vehicle be made by workers earning US$16 an hour, shifts that favour Canadian and USA plants over those in Mexico and overseas.

President Trump told reporters, "We don't like it, I believe they'll be opening up something else".

More news: Dow dives 2.2%, moves into the red for 2018

GM, the largest automaker in the US, which sells the Chevrolet, Buick, Cadillac and GMC brands, 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.

Jennifer French, MPP for Oshawa, said she found the report of the plant closure "gravely concerning". The company had around $145 billion in sales last year and costs of production of $118.7 billion, down significantly from $130.5 billion four years prior.

Three assembly plants, in Detroit, Ohio, and Ontario, are earmarked for the main cuts, along with two factories in MI and Maryland that build transmissions and batteries.

"It's hard, it's horribleGǪ We have always been the best plant in North America".

U.S. Senator Rob Portman, a Republican from OH, said he's "deeply frustrated" with GM's decision to shut down a plant in Lordstown and is pressing Barra to come up with an alternative product for the factory.

More news: Million Indians will Have Diabetes by 2030: Lancet

It was expected that GM needed to address underutilization of its plants.

The company also said it will stop operating two additional factories outside North America by the end of next year, in addition to a previously announced plant closure in Gunsan, Korea.

John Henry, the mayor of Oshawa, said early on Monday on Twitter that he hadn't talked to GM yet, and that a meeting was scheduled to begin at 09:30 a.m. Ontario time between the management and workers. GM says the move is part of a transformation for the future, which includes an increased focus on next generation battery-electric vehicles.

In a statement, Conservative Leader Andrew Scheer said the news represents the end of a "long and proud tradition in Oshawa", a reliable home to GM for more than 100 years. After we are sworn in, Jon Husted and I will be visiting the Detroit Auto Show in January to make our case in-person to GM about the future of the plant. Currently, the plant builds the Cadillac XTS, the Chevrolet Impala, the Chevrolet Silverado and the GMC Sierra.

More news: Australia win a rain-affected thriller in Brisbane!

Like this: