General Motors To Slash 14,700 Jobs In North America, Including In Baltimore

Ann Santiago
November 28, 2018

American automotive company General Motors announced Monday that it would cut almost 15,000 jobs across five factories in the United States and Canada.

The soon-to-be shuttered North American plants are the first to close since 2010.

Shares were up 2.2 percent at $36.72 (R507.52).

GM said it would shut down operations at plants in Detroit; Oshawa, Ontario; Warren, Ohio; White Marsh, Maryland; and Warren, Michigan. All the cuts are coming from the decision to get rid of six vehicle models, including the Buick LaCrosse, the Cadillac CT6 and XTS, and the Chevrolet Cruze, Impala and Volt.

Langley said the announced elimination of the passenger cars wasn't surprising, but the immediacy of canceling the cars "so quickly is a new phenomenon".

The company also said it would close three plants outside North America by the end of next year.

"You know, the United States saved General Motors and for (CEO Mary Barra) to take that company out of OH is not good", he said. So I said: "'Then put a vehicle that is selling well in there but get it open fast'".

"Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement", the union said in a statement on its website.

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 United States plants since early 2017 - including at the Lordstown, Ohio, and Hamtramck, Michigan, plants now slated to be closed. "And in return, GM has turned its back on us when we need them the most".

Barra said tariffs on imported aluminum and steel have hit the company, but she stopped short of saying they had anything to do with the restructuring.

General Motors has begun a long and expensive transition to a new business model.

About 6,000 factory workers could lose jobs in the USA and Canada, although some could transfer to truck plants.

"We represent people from Leadec, iSynergy, Magna Seating, and Jamestown Industries, all third parties that we've outsourced this work already in order to help the company remain competitive", said Green. In October, nearly 65 percent of new vehicles sold in the US were trucks or SUVs. Lordstown Local School District expects to lose 10 percent of its budget - $800,000 per year, said Superintendent Terry Armstrong.

It plans to reduce annual capital spending to $7bn by 2020 from an average of $8.5bn a year during the 2017-2019 period.

Cost pressures on GM and other carmakers and suppliers have increased, as demand waned for traditional sedans.

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 opened the Lordstown plant in the late 1960s.

Just last week, politicians and union leaders kicked off a campaign to keep the Lordstown plant operating.

"The company reaped a massive tax break from last year's GOP tax bill and failed to invest that money in American jobs", Democratic U.S. Sen.

"We were concerned for some time, but we tried to make concessions".

"General Motors' decision to gut its workforce epitomizes the bad corporate behavior Republicans in Congress have incentivized for generations", said spokesman Ryan Thomas.

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