GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

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.

Rather, the cuts are entirely about General Motors preparing for what industry experts agree will be a hard and challenging future for old-school automakers, and doing so at a time when its balance sheet is relatively healthy and the company has room to manoeuvre, he said.

America's biggest vehicle maker said the move was in response to changing customer tastes, with SUVs and pick-up trucks favoured over sedans that once ruled the country's roads. In October, nearly 65 percent of new vehicles sold in the U.S. were trucks or SUVs.

GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors.

In addition to the Oshawa assembly plant, GM has an engine and transmission plant in St. Catharines, Ont. and the CAMI Assembly plant in Ingersoll, Ont. That's how GM can meet demand for trucks and SUVs while raising the possibility of closing vehicle factories.

The restructuring is part of a shift by GM as it abandons many of its auto models and focuses more on autonomous and electric vehicles.

But isn't the economy on solid footing? "I said, 'You know, this country has done a lot for General Motors".

"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 CEO Mary Barra said in a statement.

GM also said that the company will jettison the Buick LaCrosse, Chevrolet Impala and Cadillac CT6 sedans next year.

Plants in Baltimore, Maryland, and Warren, Michigan that assemble powertrain components will have no products assigned to them after 2019 and thus are at risk of closure, the company said.

GM shut down its Australian manufacturing arm in October 2017, closing its Adelaide plant and placing 944 people out of work.

GM cited limited demand for its plug-in hybrid model, the Chevrolet Volt, as a factor in its decision to idle plants.




Tesla Inc. has already reached the cap and GM is expected to be next.

But as long as the tariffs remain in place, GM and other American automakers have little incentive to expand production and every incentive to find new supply chains and cost-cutting strategies to avoid the import taxes.

GM isn't the first to abandon much of its auto market.

".for electric cars. General Motors made a big bet years ago when they built plants there (and in Mexico) - don't think that bet is going to pay off".

Trump separately told the Wall Street Journal on Monday that General Motors Co should stop making cars in China and make them in the United States instead.

What will happen to the workers?

GM is cutting more than 6,000 hourly and salaried workers at its plants and 15 percent of the salaried workers in North America for a total of more than 10,000. Some will take buyouts while others will be laid off.

Numerous workers who will lose jobs if the plants close could transfer to another GM factory where production is being increased, spokesman Patrick Morrissey said.

The company also said it will reduce the size of its global workforce by 15%, including a 25% cut in white-collar staff.

The announcement was made to employees at a Monday morning meeting.

While GM, and other auto companies, have spoken out against rising production costs caused by the Trump administration's protectionist tariffs, a spokeswoman for the company told TheBlaze that the layoffs and plant closures "are being made as part of our ongoing transformation and are not related to recent trade or tariff decisions".

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