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



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The American company, one of the largest and oldest of the automotive sector, announced Monday the removal of approximately […] 14,000 posts in the United States and in Canada.

The plan The restructuring also includes the cessation of the production of five plants of these two countries.

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

In the announcement made Monday, it was also announced that the production of several models would be discontinued: Buick LaCross, Chevrolet Volt, Cadillac CT6 and XTS, Chevrolet Impala, as well as versions of the Chevrolet Silverado and Chevrolet Sierra .

  Demonstration in Canada

GM employees in Canada protested after learning that their factory was among those that will be closed.

On the other hand, the production of trucks, electric cars and self-driving vehicles was considered a priority for society.

"The actions we take continue our transformation into a very agile, robust and profitable society, while offering us flexibility to invest in the future ," said the President and Director. General of GM, Mary Barra.

Several unions, however, expressed their categorical rejection.

The Vice President of United Auto Workers of the United States. and Canada, Terry Dittes, said that GM had made a "foolish decision" that placed "economic gains relative to working families".

The announcement made this Monday is not mentioned changes to the production of in the factories of Mexico City . However, GM argued that the operations of two plants would be closed outside North America by 2019.

What is it? restructuring?

GM calculates that this reduction plan will give him a margin. Savings of $ 6 billion by the end of 2020, including a reduction of 15% in the number of salaried employees and 25% of management positions.

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

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

GM currently employs about . in this region which means that the cuts will affect more than 8,000 employees, in addition to the factory subcontractors.

In February, the company announced that it would close a plant in Gunsan, South Korea. He also offered voluntary layoffs to some 18,000 workers in October

Monday's announcement prompted the rejection of workers and authorities

Prime Minister of Canada, Justin Trudeau said on Twitter:

"GM workers have been part of the heart and soul of Oshawa for generations and we will do everything in our power to help families affected by this news and to get back on track Yesterday I spoke to Mary Barra to express my deep disappointment at the closure. "

In the United States, Senator Sherrod Brown, a Democrat representing Ohio called the decision of the company. as "corporate greed".

"Ohio taxpayers have saved GM and it is shameful that the company is now leaving the Mahoning Valley and firing workers just before the holidays," he wrote on Twitter.

Unions in the United States and Canada also warned that they would put pressure on the company so that it would badign more work to factories instead of shutting them down.

In Canada, Unifor Local 222's union told its members: "To be clear, Unifor does not accept the closure of the plant is an inevitable conclusion."

"Do not forget that our factory was already in this situation before, with no products in play and that we were able to make a successful campaign to continue its operations," he said.


  BBC World


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