General Motors to Lay Off Over 14,000 Employees in North America

27 November, 2018, 07:16 | Author: Sally Reid
  • GM to slash 14,700 jobs in North America

Things are much worse in the United States, where the automaker has announced plans to stop production at four plants from 2019.

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.

America's largest auto maker said some workers would transfer to SUV and truck factories, which are increasing their output because of growing demand.

GM is expected to address union members at the Oshawa plant at 10 a.m.

"We're going to fill up those factories or rip them down and build new ones", he added.

The plant in Lordstown, Ohio, which makes the Chevrolet Cruze compact vehicle also is on the list, and Barra said the Cruze would no longer be sold in the U.S. Production would stop March 1.

The U.S. 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 U.S. president.

In October, GM offered buyouts to 18,000 white-collar workers as part of a cost-cutting initiative. It will shut two unnamed plants outside North America, in addition to the previously announced closure of a plant in Korea.

GM plans to lay off about 6,000 factory workers.

"I once again urged GM to make a commitment to bring a new product to the plant, especially since GM is proposing to build a number of new electric vehicles", Mr. Portman said.

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The General Motors assembly plant in Oshawa, Ontario, Canada, Nov. 26, 2018.

"You better get back in there soon - that's Ohio", Trump told reporters Monday, recounting what he said to GM Chief Executive Officer Mary Barra following the job cuts announcement earlier Monday.

The meeting was planned prior to GM's announcement on Monday, the official said.

He stressed that GM will remain one of the biggest employers in Oshawa, with over 2,000 people working at the company's Canadian headquarters and engineering centre and an OnStar call centre.

Detroit-Hamtramck employs a total of 1,542 workers, building the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, Cadillac CT6. Propulsion plants targeted are Baltimore Operations in White Marsh, Md., and Warren Transmission Operations in Warren, Mich. Layoffs would amount to 14,700 jobs.

UAW, the autoworkers union, blasted GM's decision, saying the company was just looking for cheaper workers, and vowed to fight back.

Those include a factory in Lordstown, Ohio, where GM makes the Cruze; the Detroit-Hamtramck plant in the company's hometown, where it makes the Volt and several large sedans; and a factory in Oshawa, Ontario, where such models as the Impala, the Cadillac XTS, the Chevy Silverado and the GMC Sierra pickup are made.

Rep. Tim Ryan, Ohio Democrat, called for hearings to review how GM used millions of dollars in tax cuts from the corporate tax relief enacted by Mr. Trump and congressional Republicans past year.

Unlike its plants making passenger cars, many of GM's plants producing its higher-margin trucks and SUVs are running on three shifts, with some running six and sometimes seven days a week to keep up wih demand.

The plan may signal the demise in the USA of several passenger cars that have been struggling, including the Chevrolet Cruze, the Chevrolet Impala and the Cadillac XTS.

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