General Motors announced the closure of seven plants worldwide

November 27, 2018 09:08 AM
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Updated November 27, 2018 18:55 PM

General Motors (GM) has announced the closure of seven plants worldwide as part of a restructuring plan.

The automaker said in a statement that it will close two assembly plants in the United States and one in Canada, as well as two unidentified plants in other countries.

GM added that it will also close two US engine production plants.

The five North American plants affected by the announcement (Oshawa, Detroit-Hamtramck, Lordstown, the three vehicle assembly, and Baltimore and Warren, which produce engines and transmissions) employ about 14,500 people.

The company did not specify in its communiqué the number of workers who will lose their jobs, but stressed that "actions are being taken to reduce" the workforce by 15%, a percentage that includes "25% fewer executives to speed up decision making ".

The company said that these measures are part of a process of "transformation for the future" and "reorganization" of its global staff to "align its manufacturing capacity."

According to GM, the closures will save about $ 6 billion.

In addition to these plants, GM said that by the end of 2019 it will cease production in two others outside North America, without giving more details, although it will do so soon.

These seven closures add to the already announced Gunsan assembly plant in South Korea.

"The actions we are taking today continue our transformation to be very agile, resilient and profitable while giving us the flexibility to invest in the future," said GM president and CEO Mary Barra.

"We recognize the need to stay ahead of changing market conditions and consumer preferences so our company is in a position to achieve long-term success," added Barra.