General Motors announces the closure of factories in North America, thousands of layoffs and the end of several of its models



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Thousands of workers at General Motors (GM) found Monday that they will soon lose their jobs.

The American company, one of the largest and oldest in the automotive sector, announced on Monday cut of about 14,000 Related Searches in the United States and Canada.

The restructuring plan also includes closure of production in five plants of these two countries.

According to the company, the decision came after GM cars reported lower-than-expected sales and production costs were raised, including new tariffs on materials such as steel.

The announcement on Monday also reported that production of several models will be discontinued: Buick LaCross, Chevrolet Volt, Cadillac CT6 and XTS, Chevrolet Impala, as well as versions of Chevrolet Silverado and Chevrolet Sierra.

Protest in Canada

GM officials in Canada protested after learning that their plant is among those that will be closed.

In contrast, the production of trucks, electric cars and auto-driving vehicles was defined as a priority for the company.

"The actions we are pursuing continue our transformation to become a highly agile, resilient and profitable company, while providing us with theflexibility to invest in the futureGM president and CEO Mary Barra said.

However, several unions expressed their complete rejection of the measures.

Terry Dittes, Vice President of United Auto Workers and U.S. an "insane decision" which places "economic gains on working families."

The announcement this Monday not mentioned changes production in Oplants of Mexico. However, GM said that by the end of 2019 the operations of two mills will be closed out of North America.

What is the restructuring?

GM estimates that this cut-off plan will provide a $ 6 billion savings margin by the end of 2020, which includes a 15 percent reduction in salaried employees and a 25 percent reduction in the number of executive positions.

Three assembly plants will no longer receive orders in 2019: the Canadian factory in Oshawa, Ontario; and Detroit-Hamtramck Americans in Michigan and Warren in Ohio.

In addition, the White Marsh mills in Maryland and Warren in Michigan will also stop producing for GM.

GM currently employs about 54,000 salaried workers that region, which means that the cuts will affect more than 8,000 salaried employees in addition to those hired at the factories.

In February, the company said it would close a factory in Gunsan, South Korea. It also offered voluntary layoffs to about 18,000 workers in October.

What's the answer?

The announcement this Monday has generated signs of rejection between workers and authorities.

The prime minister of Canada, Justin TrudeauHe said on Twitter:

"GM workers have been part of Oshawa's heart and soul for generations and we will do everything we can to help families affected by this news and get back on their feet." Yesterday I spoke with Mary Barra to express my deep disappointment at the closing. "

In the US, the senator Sherrod Brown, a Democrat representing OhioHe called the company's decision "corporate greed."

"Taxpayers in Ohio have rescued GM and it's a shame the company is leaving the Mahoning Valley and firing workers shortly before the holiday," he wrote on Twitter.

Trade unions in the United States and Canada also warned that they would pressure the company to allocate more work to the factories rather than deactivate them.

In Canada, the Unifor Local 222 union told its members: "To be clear, Unifor does not accept the closure of the factory as an unavoidable conclusion."

"Remember, our factory has been in this situation before, with no product on the line and we have managed to make a successful campaign to continue operations," he said.

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