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General Motors announces the closure of seven factories around the world



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November 27, 2018 09:08 AM
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Updated November 27, 2018 09:11

General Motors (GM) announced the closure of seven plants around the world as part of a restructuring plan.

The car said in a statement that it would close two assembly plants in the United States and one in Canada, as well as two other unidentified plants in other countries.

GM added that it would also close two US engine plants.

The five North American affiliates affected by the announcement (Oshawa, Detroit-Hamtramck, Lordstown, the three vehicle assemblies and Baltimore and Warren, which produce engines and transmissions) employ approximately 14,500 people.

The company has not stated in its statement the number of workers who will lose their jobs, but stressed that "measures are being taken to reduce the workforce by 15%, which includes" 25% fewer executives to make it more efficient decisions. ".

The company has indicated that these measures are part of a process of "transformation for the future" and "reorganization" of its global staff to "align its production capacity".

According to GM, closures will allow savings of about $ 6,000 million.

In addition to these factories, GM said that by the end of 2019, production will cease in two other locations outside North America without providing further details, although it will do so soon.

These seven closings are added to South Korea's already-announced Gunsan assembly plant.

"The actions we take today continue our transformation to be very agile, resilient and profitable, giving us the flexibility to invest in the future," said GM President and CEO Mary Barra.

"We recognize the need to stay ahead of changing market conditions and consumer preferences so that our company is able to achieve long-term success," Barra added.

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