GM is turning away from the car business.
Thus, the American car company has described massive reductions it announced on Monday, part of an "accelerating transformation" that includes molding facilities in Detroit, Ohio, Ontario, Maryland and Michigan, as well as two overseas plants at the end of 2019. The company will cut its staff by about 15%, and its executive rank will be a quarter, reaching more than 10,000 job losses, according to Bloomberg calculations, including the 6,000 workers in its factories.
Closure and shutdown facilities are part of a transformation that transforms the automotive industry in the US while it largely abandons conventional cars and instead focuses almost entirely on trucks, SUVs and crossover- along with the development of fully electric vehicles and vehicles. Ford has announced this year that it will sell only two vehicles in North America that are not a type of truck: Mustang and Focus Active, a crossover.
GM blamed factory shutdowns in the context of "declining market volume in cars," while observing that it has reoriented capital and resources to support the growth of crossovers, SUVs and trucks. For example, in Lordstown, Ohio – where Chevy Cruze is assembled.
The Cruze is just one example of the GM sedan that suffers – Cruze deliveries in the most recent quarter fell by more than 25% over the same quarter last year, while Chevy Malibu supplies fell by more than 45%. By comparison, the suburban and Tahoe saw that their deliveries increased by more than 10% and 20% respectively. Overall, in the first nine months of the year, GM's total deliveries declined slightly.
Together with the Cruze manufacture in the US, GM will also remove North American production of Buick LaCrosse, Cadillac CT6 and Chevy Impala, as well as the Volt Hybrid.
While the SUV and truck market should be sustained by the Trump administration in terms of mileage and environmental standards imposed by the State of California and the Obama administration, GM said steel and aluminum tariffs have affected the business. In July, the company said it had "unhindered exposure" to rising steel and aluminum prices, which were boosted by tariffs.
GM's contribution rose by nearly 6% at the beginning of the afternoon.
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