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General Motors wants to close several factories with conversion to electric cars and significantly reduce staff. By the end of 2020, it would save six billion dollars annually, announced Monday the largest US automaker. Costs are expected to decrease by $ 4.5 billion and investments by $ 1.5 billion annually. A total reduction of 15% of jobs will accompany a 25% reduction of all executive jobs. The billions in restructuring costs must be financed by credit. "We are adapting the ability of reality to the market," said Mary Barra, director of GM. The priority investments would have platforms for the next generation of battery electric cars.
In the coming year, production will be stopped in Oshawa, Canada, Hamtramck in Detroit and Michigan, and Lordstown in Warren, Ohio. This is explained by the sharp drop in US limousine demand and by rising costs, such as the higher import tariffs on steel adopted by US President Donald Trump. .
GM's share was – shortly after the launch of the US stock market – suspended by the transaction. After the announcement of the restructuring plan, securities traded at around 7%. The group's market value driver, which had circulated nearly $ 145.6 billion last year and lost $ 3.9 billion, reached $ 53.5 billion. GM is about $ 5 billion less than e-car pioneer Tesla, whose GM share could grow by more than 4 percent.
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(Reuters)
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