General Motors announces the closure of seven factories worldwide


November 27, 2018 09:08
Updated November 27, 2018 09:11 AM

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

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

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

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

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

The company indicated that these measures are part of a process of "transformation for the future" and "reorganization" of its global team to "align its production capacity."

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

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

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

"The actions we are taking today continue 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 be ahead of changes in market conditions and consumer preferences so that our company is in a position to succeed in the long run," added Barra.


Source link