Wednesday , September 28 2022

General Motors announces closure of factories in North America, thousands of layoffs and the end of several models


The US company, one of the largest and oldest in the automotive sector, announced on Monday cut about 14,000 jobs in the United States and Canada.

The restructuring plan includes and closure of production in five factories from the two countries.

According to the company, the decision comes after GM's sales were lower than expected and increased production costs, including new tariffs on materials such as steel.

The announcement on Monday also reported that the production of several models will be interrupted: Buick LaCross, Chevrolet Volt, Cadillac CT6 and XTS, Chevrolet Impala, as well as Chevrolet Silverado and Chevrolet Sierra versions.

Protest in Canada

GM employees in Canada protested after they learned that their plant is among those that will be closed.

Instead, the production of trucks, electric vehicles and motor vehicles has been set as a priority for the company.

"The actions we take make our transformation into an extremely agile, resilient and profitable company, providing us at the same timethe flexibility to invest in the future"said GM president and general manager Mary Barra.

However, several trade unions expressed total rejection of the measures.

US Vice President Car Corporation and Canada Terry Dittes said that GM has taken it a "crazy decision" which puts "economic gains on working families".

Announcement Monday not the above mentioned changes production in plants in Mexico. However, GM said that by the end of 2019 the operations of two plants would be closed outside of North America.

What is restructuring?

GM calculates that this reduction plan will provide a savings margin of $ 6 billion by the end of 2020, which includes a 15% reduction in the number of employees and 25% in the number of executive positions.

Three assembly plants will no longer receive orders in 2019: the Canadian Oshawa plant in Ontario; and the Americans at Detroit-Hamtramck in Michigan and Warren in Ohio.

In addition, White Marsh plants in Maryland and Warren in Michigan will also cease to produce GM.

GM is currently working 54,000 employees in Romania that region, which means that reductions will affect more than 8,000 employees, in addition to factory contractors.

In February, the company announced it would close a factory in Gunsan, South Korea. He also offered voluntary redundancies to around 18,000 workers in October.

What is the answer?

The announcement of this day has generated signs of rejection of workers and authorities.

The Prime Minister of Canada, Justin TrudeauHe said on Twitter:

"GM workers have been part of the heart and soul of Oshawa for generations and we will do our best to help families affected by this news and return to our feet." Yesterday I talked with Mary Barra to express my deep disappointment of closing. "

In the US, Senator Sherrod Brown, a Democrat representing OhioHe called the company's "corporate greed" decision.

"Ohio taxpayers have saved GM and it is shameful that the company is now leaving the Mahoning valley and burning workers just before the holidays," he wrote on Twitter.

Unions in the United States and Canada have also warned they will press the company to allocate more work to factories than shut them down.

In Canada, Unifor Local 222 said to its members: "To be clear, Unifor does not accept closing the plant as an inevitable conclusion."

"Remember, our plant was in this situation before, without any product in line and we managed to make a successful campaign to continue operations," he said.

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