GM downsizing plants and staff
According to the BBC, General Motors (GM) has plans to stop production at five factories in North America, resulting in the cut of more than 14,000 jobs.
Additionally, GM has stated that it will be closing three plants outside of the North American region by the end of next year.
The changes are the result of rising costs and decrease in car sales, which has come at a time that GM focuses on EV and autonomous vehicles.
However, not everyone is happy about the company’s restructuring, including US President Donald Trump, who claimed that he was, ‘Not happy about it.’
The halting of production is due to the popularity of larger vehicles, like SUVs and trucks, in North America.
GM chair and chief executive, Mary Barra, claimed that the company wants to look towards the future and drive electric and self-driving vehicle growth. She commented, ‘The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future.’
GM’s closures include: assembly plant in Oshawa, Canada; centres in Detroit and Warren, Michigan; plant in Warren, Ohio; a centre in Baltimore, Maryland and a factory in South Korea.
Additionally, the company is reducing production of several models including the Buick LaCross, Chevrolet Impala, Cadillac CT6 and several others. GM is expecting these cuts to impact more than 6,100 shift workers and 8,000 employees.