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GM drops to 14,000 jobs in North America; Under the restructuring, 7 plants could be closed



General Motors in North America will cut to 14,000 workers and build five shutdowns as it leaves many of its car models and restructures to cut costs and focus more on autonomous and electric vehicles.

The reduction includes about 8,000 employees or 15 percent of North American labor. Some will buy, while others will be redundant.

Four factories in the US and one in Canada could be closed by the end of 2019 unless the authors and their bosses come up with an agreement to allocate more work to these facilities, GM said in a statement Monday. The other two will close outside North America.

The company marked the Detroit sedan race, a compact car race in Ohio, and another off-line assembly outside of Toronto for eventual closure. Two transmission devices, one outside of Detroit and the other in Baltimore, are also at risk.

In factories, Canada could lose more than 3,300 workers in Canada and another 2,600 in the US, but some US workers could move to factories or SUVs that are growing.

The company also announced that by the end of next year, two more factories outside North America would cease operating, except for the previously announced closure of the Gunsan plant in Korea.

Restructuring reflects changing US and North American automotive markets as a dramatic shift from cars to SUVs and trucks continue. In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs. It was about 50 percent of cars five years ago.

GM is getting rid of cars mainly because it does not earn them, Citi analyst Itay Michaeli wrote in a note to investors.

"We estimate that the sedans are working with a significant loss, so there is a need for classical restructuring," he wrote.

General Motors Co. is a predisposition to reach a lower level before the next downturn is likely to be followed by Ford Motor Co., which claims to be restructuring and releasing an unspecified number of workers. Toyota Motor Corp. also discussed cost-cutting costs, despite building a new production plant in Alabama.

GM is not the first to leave most of its automotive market. Fiat Chrysler Automobiles came out of small and medium-sized cars two years ago, while Ford announced plans to get rid of all the cars but the Mustang sports car in the US in the coming years.

GM, the largest carmaker in the US, which sells Chevrolet, Buick, Cadillac and GMC, grew by nearly 6 percent on the news item at $ 37.93 on Monday.

GM said it would save $ 6 billion in cash by the end of next year, including $ 4.5 billion from repeated annual cost reductions and $ 1.5 billion in capital spending cuts.

These cuts are in addition to the $ 6.5 billion that the company announced by the end of this year.

GM does not expect economic downturns and cuts cuts "to get ahead of it, while the company is strong and while the economy is strong," said Mary Barra, CEO, to journalists.

She also noted that tariffs on imported alloys and steels hit the company but ceased to say they had to do with restructuring.

If all factory workers were released, the reduction announced on Monday would account for about 8 percent of GM's global labor force by 180,000 employees.

Reductions could be reversed through car parts suppliers such as Aptiv and Magna International, Michael said.

Many of those who lose their jobs now work on conventional cars with internal combustion engines. Barra says the industry is rapidly changing and moving towards electric drive, autonomous cars and driving sharing, and GM has to adapt.

She said GM still employs software and electric and autospecialists. The company has invested in newer truck and SUV architectures, so it can reduce capital spending while increasing investment in autonomous and electric vehicles.

GM offered to buy 18,000 retired employees with twelve or more service flights. It would not have said how much it took to buy but did not reach the company's goal because GM said the white collars would be released.

The company expects to charge $ 3 billion to $ 3 billion for the shares, including a $ 1.8 billion reduction in property and pension costs. Fees will take place in the fourth quarter of 2018 and the first quarter of next year.

Most factories to be affected by the restructuring of GM are building cars that will not be sold in the US next year. They could close, or they could have other cars they could build. Their future will be part of the contractual talks with Unified Auto Workers next year.

The Detroit-based Union has already condemned GM's activities and threatened to fight them "through any legal, contractual, and collective agreement that will be open to our membership."

The options include a Detroit / Hamtramck assembly plant, Buick LaCrosse, Chevrolet Impala and Volt and Cadillac CT6, all slow-moving vehicles. Production of LaCrosse and Volta will end March 1, while production of CT6 and Impala will end June 1.

The Lordstown plant in Ohio, which makes a compact Chevrolet Cruze car, is also on the list, and Barra says the Cruze will no longer be sold in the US. The production will stop on March 1.

Work on six-speed transmissions at a transmission plant in Warren, Mich., Will stop on August 1, while the Baltimore transmission station will stop production on April 1, GM said.

The GM plant in Oshawa, Ontario, will stop producing the Impala, Cadillac XTS and 2018 in full format in the fourth quarter of next year. The Canadian plant seemed to be most at risk of closure.

Ontario Prime Minister Doug Ford said he had spoken with GM director on Sunday and was told "that the ship had already left the dock" when asked if Ontario could do anything.

Canadian Prime Minister Justin Trudeau said he had spoken to Barro on Sunday to express his "deep disappointment" with the closure.


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