GM overhaul spells end to century of automaking in Canadian hub

GM overhaul spells end to century of automaking in Canadian hub

GM overhaul spells end to century of automaking in Canadian hub

Plants in Baltimore, Maryland, and Warren, Michigan, assembling powertrain components will have no products assigned to them after 2019 and are at risk of closure, GM said.

On Monday morning, dozens of workers were seen walking out of the assembly plant, with some saying they were very unhappy with news of the planned closure. The Detroit-based company's shares surged on the plan, which includes abandoning some of its slower-selling sedan models.

CBS News reports that the layoffs make up about 15 percent of GM's workforce. We want to make sure we're well-positioned. "We think it's appropriate to do it while company is strong and the economy is strong".

Shares in General Motors traded at their highest level in several months following the announcement, at one point reaching US$38.75 in NY. The stock is still down about 7 per cent this year. During frank conversations with GM CEO Mary Barra after the announcement that GM cut a shift at the plant due to the weakening market for the Chevy Cruze, I urged her to look to the Lordstown plant for production of other vehicles and to make a public commitment to the plant and its workforce.

The moves will result in cash savings of about $6 billion, cost reductions of $4.5 billion and a lower capital expenditure annual run rate of nearly $1.5 billion, according to a company statement. Some 500,000 jobs are tied to the auto sector in Canada.

In a dramatic move, GM will be "unallocating" Lordstown Assembly in OH, which builds the Chevrolet Cruze; the company's famed Detroit/Hamtramck Assembly, home of the Cadillac CT6, the Buick LaCrosse, the Chevrolet Volt, and the Chevrolet Impala; and Oshawa Car Assembly in Ontario, Canada, which produces the Impala, the Cadillac XTS, and recently picked up a few Chevrolet Silverado lines as well. The facilities made some trucks, but those trucks are also made at in Mexico.

Barra said GM is still hiring people with expertise in software and electric and autonomous vehicles, and many of those who will lose their jobs are now working on conventional cars with internal combustion engines. The Canadian plant appeared to be most in danger of closing. The company has sold about 22,000 through September and in August sought an exclusion from 25 per cent USA tariffs imposed on Chinese vehicle imports.

PM May wins business support for draft Brexit deal
But it is unclear what would happen if Parliament rejected the deal when it is put to a vote, likely next month. Instead, both sides could discuss creating new unobtrusive checks away from the frontier, he said.

United States to join Australia in Papua New Guinea naval base plan
China's President Xi Jinping arrives for the Apec CEO Summit 2018 in Port Moresby, Papua New Guinea, Saturday, Nov. 17, 2018.

Did Couple and Homeless Veteran Use GoFundMe to Scam Contributors?
NBC reported that D'Amico and McClure turned themselves in to authorities Wednesday, but Bobbitt's whereabouts were unknown. Burlington County prosecutors outlined the allegations against Mark D'Amico, Katelyn McClure and Johnny Bobbitt on Thursday.

Canadian Prime Minister Justin Trudeau said he spoke with Barra and expressed "deep disappointment".

"Every time we have a problem with a point, I just put up a picture of a Chevrolet Impala", the USA president was reported to have said.

GM will also close two additional plants outside of North America by next year.

A White House spokesperson didn't immediately respond to a request for comment.

Barra said the automaker is running at about 70 percent capacity utilization in North America, and GM will provide an update on how the latest moves will improve utilization in January.

She said the industry is changing rapidly and moving toward electric propulsion, autonomous vehicles and ride-sharing, and GM must adjust with it.

General Motors will cut more than 14,000 salaried staff and factory workers and close seven factories worldwide by the end of next year, part of a sweeping realignment to prepare for a future of electric and self-driving vehicles.

Related news