GM to slash jobs and close 8 plants

27 November, 2018, 07:20 | Author: Corey Lynch
  • GM to slash 14,700 jobs in North America

The United Automobile Workers (UAW) union vowed to "confront this decision by GM through every legal, contractual and collective bargaining avenue open to our membership". Things are much worse in the United States, where the automaker has announced plans to stop production at four plants from 2019.

The Oshawa Assembly Plant employs 2,522 workers with Unifor Local 222, according to GM's website.

The closure of the Oshawa Assembly Plant is part of a shift in the company's global production and has nothing to do with the new U.S. -Mexico-Canada trade agreement, a source familiar with the situation told The Canadian Press Sunday.

But the next automaking leader may not be GM or one of its traditional rivals.

Representative Tim Ryan, a Democrat from the district that includes the Lordstown plant, said the taxpayer bailout kept GM afloat during the recession.

President Trump told reporters, "We don't like it, I believe they'll be opening up something else". That includes $4 billion in cost cuts and $1.5 billion in reduced capital expenditures.

Kris Tripplaar/Sipa USA/NewscomSpeaking to a cheering crowd in Youngstown, Ohio, in July of past year, President Donald Trump promised more jobs would soon be flowing to the blue-collar city.

In that AP report, Lordstown was singled out as a "possible target" for GM, citing the need to reduce personnel and the uncertainty of whether enough employees took a proffered buyout from the company.

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




More than 16 months ago, the UAW confirmed that it was discussing with GM the potential threat to plants and jobs from slumping US sedan sales.

"It's not just General Motors, it's all the parts suppliers, logistics companies, they're all involved in putting these vehicles together and if we're gone it's a lot bigger than just GM", said Jesse Forbes, who's worked for GM in Oshawa for 17 years.

The cuts will make GM "lean and agile" as the company aims to "lead in autonomous and lead in electric vehicles", Barra said.

The General Motors Hamtramck Assembly plant in MI and Lordstown Assembly plant in OH are being "unallocated" in 2019 as a part of a major company restructuring.

GM shares rose as much as 7.8 percent following the announcement, and were almost 6 percent higher at $37.97 in midafternoon trading.

GM's latest move includes the possible closure of seven plants worldwide, as the firm shifts its focuses from away from a stagnant sedan/saloon vehicle market. It will integrate its vehicle and engine engineering teams, and it will bring more employees together, trimming the number of campuses for auto developers.

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.

The Volt hybrid and the LaCrosse will go the way of the dinosaur, along with several other cars, GM officials announced. GM also plans to close an assembly plant and a transmission plant in OH, along with an assembly plant in Canada.

But moving that auto, the Chevrolet Cruze, south of the border brings the risk of provoking a backlash from President Donald Trump. "They better put something else in", Trump, who has pushed for more manufacturing jobs throughout his nearly two years in office, said.

Recommended:



Popular

GameStop Offering Awesome Nintendo Switch Cyber Monday Deal
Target was offering 30 percent off on select toys, while Kohl's discounted Lego sets between 30 percent and 40 percent. ET, no big USA chain had seen any technical difficulties, according to website outage tracker DownDetector.com.

Brexit deal 'only one possible'
The proposed deal outlines how Britain can keep close to the European Union market after a two to four-year transition. At the same time, he urged the British parliament to back the deal because nothing better will come to the table.

Alexander Zverev: Tim Henman reveals the two reasons German beat Novak Djokovic
Djokovic, who beat Kevin Anderson to reach the final, joined Federer in defending Zverev. With the biggest win of his career in sight, Zverev began to show some nerves.

Legal groups argue in court against Trump administration asylum ban
In that case, and in the case here in California, the judges said they would issue their decisions later on. US President Donald Trump does not want to accept the dispute for stricter asylum a legal defeat rules.

Stocks open higher on Wall Street after 2 days of big losses
Apple fell 4.7 percent to $177.10 and is down 24.2 percent from the peak it reached October 3, though it's still up for the year. Advancing issues outnumbered declining ones on the NYSE by a 2.77-to-1 ratio; on Nasdaq, a 2.91-to-1 ratio favoured advancers.

Trump dismisses Roberts rebuke and blames judges for 'bedlam and chaos'
US Defense Secretary Jim Mattis on Wednesday was asked by reporters whether he thought Trump should visit troops in war zones. One man said: "Let us cross now, we're already desperate, we've left family in Honduras, we need to work".

Pres. Trump Defends Ivanka's Use of Personal Email
However, Trump's own former director of communications Anthony Scaramucci, said that Ivanka's use of a personal email was hypocritical.

Pakistan summons United States envoy as Trump doubles down on criticism
Trump accused McRaven in a Fox News interview broadcast on the weekend of being a " Hillary Clinton backer and an Obama backer ". As commander of the Pentagon's Joint Special Operations Command in 2011, he oversaw the raid that killed bin Laden in Pakistan .

'FEAR OF OUTSIDERS': American reportedly killed by isolated tribe on Indian island
According to media reports, the American was on an adventure trip to the islands and his body was found by the fishermen. To protect the tribe's way of life, foreigners and Indians are banned from going within three miles (five kilometres).

Oil prices slip amid broad market sell-off that outweighs expected OPEC cuts
According to recent data, U.S.is producing a record 11 million barrels of crude per day, up 18% since the start of this year. Oil's slide has been largely unimpeded since early October when WTI prices were near four-year peaks.