GM will close seven plants and stop producing the Chevrolet Cruze and other models

To achieve a profitability of $ 6,000 million in 2020, the North American company will close seven plants worldwide while announcing the end of production of several of its models, such as Chevrolet Cruze and Volt.

In the context of a major administrative restructuring, the multinational General Motors ad the closure of seven of its plants internationally, while reducing its workforce by 15%. With this decision, he seeks to reach $ 6,000 million in operating savings by 2020, adaptation to "changing market conditions".

The President and CEO of GM, Mary Barra, said in a statement that "the actions we take today continue our transformation very agile, resilient and profitable, while giving us the flexibility to invest in the future".

Chevrolet Volt

Plants in close

The factories that are known to close their doors are located in Lordstown, Ohio; Hamtramck, Michigan (near Detroit) and Oshawa, province of Ontario in Canada. Other facilities that will reduce their operations are those of White marsh, Maryland and Warren, Michigan, both dedicated to the construction of engines. It is estimated that about 15,000 people will lose their jobs.

In addition, there would be plans for finalize the production and / or badembly processes in other countries not yet confirmed. Since the beginning of 2018, the cessation of activity of the factory was already known. Gunsan, South Koreabecause it is underutilized.

See also: GM and Isuzu Motors renew their partnership for the production of Chevrolet buses and trucks

Chevrolet Impala

The end for several models

As a result of this decision, will stop producing several vehicles who were armed in the mentioned plants, all the bodies: Chevrolet Cruze, Chevrolet Volt, Chevrolet Impala, Buick LaCrosse, Cadillac CT6 and Cadillac XTS. For the future, the company announced the development of a series of electric and autonomous vehicles, for which there is still no additional information.

Similarly, GM indicated that closures were part of accelerating its "transformation for the future" and the "reorganization" of its global workforce is done to "align its manufacturing capability". "We adapt capacity to the realities of the market"said Mary Barra.

Costs have increased exponentially for North American automakers and their suppliers. The prices of imported steel represent GM a payment of taxes of 1,000 million dollars.

Cadillac CT6

Read also: The 2019 Chevrolet Blazer announced its upcoming arrival in Colombia at the Auto Show

Fabián Rojas Castañeda.

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