Published: Tue, November 27, 2018
Money | By Ethel Goodwin

General Motors slashes 14000 jobs, seven factories

General Motors slashes 14000 jobs, seven factories

Another two will close outside North America.

GM says it is maintaining its profitable lineup of SUVs and trucks but will shift away from some of its smaller vehicles that haven't seen strong sales.

Fiat Chrysler Automobiles got out of small and midsize cars two years ago, while Ford announced plans to shed all cars but the Mustang sports auto in the U.S. in the coming years.

"The American people deserve to know if the tax cuts they paid for are being used to inflate corporate profits at the expense of their economic security and the survival of American workers", Mr. Ryan wrote to the House Ways and Means Committee.

Altogether, GM has five auto factories with plenty of unused capacity in Kansas City, Kansas; Lordstown; and Detroit-Hamtramck, Lansing, and Orion Township, Michigan. The affected facilities build cars that will not be sold in the United States after next year.

More than 16 months ago, the UAW confirmed that it was discussing with GM the potential threat to plants and jobs from slumping US sedan sales. GM said the cuts will boost automotive free cash flow by US$6 billion by the end of 2020 and result in one-time charges of up to US$3.8 billion in the fourth quarter of this year and first quarter of 2019.

The company has said the additional tariffs have cost GM more than $1 billion.

"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.

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

She said GM is still hiring people with expertise in software and electric and autonomous vehicles.

GM plans to announce a broader restructuring of its efforts as it shifts more of its focus toward electrified and autonomous vehicles, the source said. The company last month offered voluntary buyouts for 18,000 salaried workers.

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

In a statement, Unifor says it was informed on Sunday that GM would be making a major announcement that will impact its global operations, including the Oshawa assembly plant. What happens to those plants will be discussed during contract talks with the United Auto Workers union next year.

The biggest USA autoworker union vowed to fight GM's plans. "They better put something else in", Trump, who has pushed for more manufacturing jobs throughout his nearly two years in office, said.

Since then, a quarterly sales report continued to show declining sales numbers for the Lordstown built Chevy Cruze. The automaker says the decision to reduce American production has to do with reduced demand for cars like the Chevrolet Cruze, which is built at the OH plant, and an overall strategic shift towards more popular crossover and SUV models.

GM says the Detroit-Hamtramck Assembly, Lordstown Assembly, Baltimore Operations, and Warren Transmission Operations "will be unallocated in 2019".

Green said part of their mission moving forward is to "convince" General Motors to protect jobs in Lordstown and protect manufacturing jobs in the area.

Unifor Local 222 shop chairman Greg Moffatt said Monday the plant is not closing "without the fight of our lives".

The person asked not be identified because the meeting wasn't publicly announced.

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