GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

GM Closing Lordstown Plant In 2019, Cutting Thousands Of Jobs

Ford said in April it planned to stop building almost all cars in North America.

So before heading to Mississipi for a campaign rally, Trump said he had expressed his displeasure to General Motors Chief Executive Mary Barra.

GM will stop making the Chevrolet Cruze, the Chevrolet Volt plug-in hybrid, and large sedans including the Chevrolet Impala, Buick LaCrosse and Cadillac CT6. "This industry is changing very rapidly".

The plan to cut 15 per cent of salaried workers follows a round of buyouts that GM offered to about a quarter of its longer-tenured workforce at the end of October. The United Auto Workers union, which represents employees at GM's US factories, said in an emailed statement that it will challenge GM's decision through legal, contractual, and collective bargaining means.

Most of the factories to be affected by GM's restructuring build cars that will not be sold in the USA after next year.

Thousands of workers walked out of the Oshawa plant this morning in protest of the news.

He said he told Ms. Barra that GM should stop making cars in China and open a new plant in OH to replace the facility targeted for closing.

GM's move marks the first rounds of U.S. plant closings since 2010, though the automaker has eliminated shifts and laid off workers at some USA plants since early 2017 - including at the Lordstown, Ohio, and Hamtramck, Michigan, plants now slated to be closed. The company, calling the move a response to "changing market conditions", said it would get rid of more than 6,000 production jobs and another 8,000 salaried positions.


General Motors said that it would shift more of its investment into electric and autonomous vehicles in the face of a declining market for traditional fuel-powered cars and as it tries to make $6 billion of annual savings.

Unifor, the union representing more than 2,500 workers at the Oshawa plant, said in a statement that it does not have complete details of Monday's announcement, but it has been informed that there is no product allocated to the Oshawa plant past December 2019.

Propulsion plants in Maryland and MI also will not be given any product.

The US plants are in places that have been economically devastated by job losses and pressure on wages for decades, which helped lead to the 2016 election of Donald Trump as US president.

In a press release, GM said it will cut 15 percent of its salaried workers and new products will be brought to fewer plants next year. GM expects to spend $1 billion on Cruise this year to build the next generation of cars. All of which assumes that they really, truly do intend to close the plant, though, instead of essentially holding the jobs for ransom to see what Trump and the state government in OH will offer them to keep it open.

When you factor in effects on the supply chain, some 49,000 jobs overall in North America could be affected. Lordstown Assembly builds the Chevrolet Cruze.

At the factories, around 3,300 blue-collar workers could lose jobs in Canada and another 2,600 in the USA, but some U.S. workers could transfer to truck or SUV factories that are increasing production.

SLUMPING U.S. SEDAN SALES An industrywide slowdown in passenger vehicle sales started to pick up steam in 2017.

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