Published: Wed, November 28, 2018
Money | By Ethel Goodwin

Local lawmakers call idling of GM Lordstown plant a new 'Black Monday'

Local lawmakers call idling of GM Lordstown plant a new 'Black Monday'

General Motors Co. said it will cut more than 10,000 salaried staff and factory workers and close five factories in North America by the end of next year, part of a sweeping realignment to prepare for a future with a greater number of purely electric vehicles.

General Motors announced Monday that Lordstown, along with several other plants of operation, will remain "unallocated" meaning they won't receive any new product.

General Motors announced Monday it will stop small-car production at its assembly plant near Youngstown and consider closing it for good. Along with two other closures outside North America, the company is jettisoning some of its slower-selling sedans.

GM's stock rose 5.5 percent after this announcement. He says he told the company that the us has done a lot for GM and that if its cars aren't selling, the company needs to produce ones that will. The company has sold about 22,000 through September and in August sought an exclusion from 25 percent USA tariffs imposed on Chinese vehicle imports. Plants that will be "unallocated" in 2019 include Lordstown, as well as Detroit-Hamtramck in MI and Oshawa Assembly in Ontario, Canada. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.

Barra was scheduled to meet with White House economic adviser Larry Kudlow on Monday following the automaker's announcement, a White House official said.

GM said its Oshawa Assembly plant in Oshawa, Ontario, its Detroit-Hamtramck Assembly plant in MI, and its Lordstown Assembly plant in Warren, Ohio, would be "unallocated" by the end of 2019 as it reorganized its manufacturing capacity to focus on electric and self-driving cars and in anticipation of a downturn in the auto market.

"We are right-sizing capacity for the realities of the marketplace", Chief Executive Mary Barra said, adding that the cuts were prompted by auto industry changes. GM will discontinue the Cruze in the U.S. market by 2019. However, the president's policies have contributed to the problem according to GM, who have pointed towards rising costs for suppliers, namely steel tariffs.

That may have played a role in the decision to lay off what amounts to 8 percent of GM's global workforce. The second-largest domestic automaker had already scrubbed plans for a second assembly line in Mexico a year ago due to declining passenger vehicle sales.

GM added this to its statement: "Many of the USA workers impacted by these actions will have the opportunity to shift to other GM plants where we will need more employees to support growth in trucks, crossovers and SUVs".

Ontario Premier Doug Ford said he talked to the head of GM on Sunday and was told "the ship has already left the dock" when he asked if there was anything Ontario could do.

She also said the company remains committed to its facilities in OH, despite the closure of the Lordstown plant, with six other locations and 4,000 employees, as well has hundreds of suppliers and dealers.

Through the workforce downsizing and plant closures, GM expects to reduce total annual costs by $6 billion by the end of 2020.

He said that the administration would be looking at certain electric auto subsidies, but that he "can't say anything final about that".

GM opened the Lordstown plant in the late 1960s in the southwest corner of Trumbull County.

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