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General Motors announced its intention to stop the production of five plants in North America and to cut 14,700 jobs due to slower sales of sedans and the impact of pbadenger fares. Donald Trump.
More than 6,000 blue collar jobs will be created hit by GM plans to shut down production in a car plant in Canada and two more in Ohio and Michigan. Two transmission plants in the United States will also be decommissioned, which will cast doubt on the future of these plants.
The cuts will also affect 15% of GM's 54,000 white collar workers, about 8,100 people, and 18,000 GM employees were fired. asked to accept voluntary redundancies.
Trump – who won many voters in most states concerned by GM's decision promising to save their jobs – told reporters that he was not happy with the decision. "We do not like it," he told reporters. "This country has done a lot for General Motors. Mary Barra, GM's chief executive, was scheduled to meet in London Monday with the White House's chief economic advisor, Larry Kudlow.
"We are making this decision now, while the company and the economy are strong to stay ahead of the changing market conditions," Barra said during a conference call. GM's stock price rose 5.5% to new.
Automobile Plants – Ohio's Lordstown Assembly, the Detroit-Hamtramck Meeting and the Oshawa Meeting – Build all of the slow-moving cars.Trump organized a rally near the Lordstown factory in July and ordered the workers not to sell their homes because "jobs are coming back."
The issue will be addressed in discussions with the United Auto Workers Union next year.
Cost pressures for GM and other automotive companies and suppliers have increased as demand for traditional sedans has faded. The company also said that tariffs on imported steel, taxed at the beginning of the year by the Trump administration, had cost it $ 1 billion.
Michelle Krebs, an badyst at Autotrader, said that Barra "was trying to overcome a potential crisis by making cuts now." She added that a combination of factors had triggered GM's action: a significant market downturn in China and a potential slowdown in the North American market, the dramatic shift from traditional cars to commercial vehicles, and the impact of tariffs and trade problems.
GM is on the The Unifor Canadian union, which represents most of the unionized auto workers in Canada, said on Sunday that GM had informed that no product would be awarded to the company. Factory in Oshawa after December 2019.
Canadian Prime Minister Justin Trudeau has "deep disappointment" with the decision.He said on Twitter: "The workers of GM fo has been part of the heart and mind of Oshawa for generations and we will do everything in our power to help families affected by this information get back on their feet. Yesterday, I spoke with GM's Mary Barra to express my deep disappointment at the closure.
The largest US automaker employs approximately 2,500 union employees in Oshawa, which produces Chevrolet Impala and Cadillac XTS sedans. He also completes the final badembly of Silverado and Sierra vans, plus sold, shipped from Indiana.
GM has been discussing internally for months how to cope with declining demand for cars, said one person informed of the problem. will reappear when GM will have contract negotiations with the UAW next year.
The company has begun what should be a long and costly transition to a new transportation model that includes electric and automated vehicles, many of which will be shared rather than owned. GM announced the last tightening of the belt at the end of October, when it had bought 50,000 North American employees
Due to the slowdown in auto sales in the United States, several auto factories do not are more than a site, including those of Detroit Hamtramck Assembly and Lordstown, Ohio, badembly plant.
Ford and Fiat Chrysler rivals have limited US auto production. Ford announced in April its intention to stop building almost all cars in North America.
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