I do not think so A factory that does not have to pay is necessarily closed.

General Motors Corp. (GM), the largest automaker in the United States, has begun a restructuring to become a new technology company focused on electric vehicles and autonomous vehicles from the center of its internal combustion engine.

Meribara (57), president and CEO, takes over. Barra focuses on GM's commercial reorganization and future technology investments since joining GM's headquarters in 2014. The largest restructuring since GM's 2008 global financial crisis put GM on the verge of bankruptcy.

Barra is the first female CEO to be a major global automaker. He specialized in electronics at GM's General Motors Institute (now Kettering University) and joined GM as a field engineer.

After becoming CEO, he slammed his fingers all over the world. The restructuring was implemented by closing factories or selling business units in Russia, Europe, India, South Africa and Australia, including the Kunsan plant in Korea.

"I always smile when I'm alone, but in terms of management, we talk about" coolness "(Bloomberg Communications). According to an badessment, President Barragh has given good results for this vast restructuring plan.

GM (June 26) announced plans to restructure its plants in the United States and Canada. By the end of 2019, five production plants in North America and two factories abroad will be closed and the workforce will be reduced by 14,000 people, Bloomberg said.

There are four plants in the United States and one in Canada, with confirmed stops or lags. Hamtram in Detroit, Rhodes Town in Ohio, Warren in Michigan, Baltimore in Maryland and the Oshawa badembly plant in Ontario, Canada.

The production of Chevrolet Cruz, Cadillac CT6, Buick LaCrosse and others will stop there. Chevrolet Cruz has transferred its production to the Mexico factory and continues to produce for export, but the other models are abandoned. GM has not announced where its factories abroad would be shut down.

More than 14,000 people are employed in the United States and Canada. This equates to 8% of the 180,000 GM employees worldwide. According to the job, there are about 8,000 office workers and 6,900 production workers. It will also reduce the level of management by 25%.

Baraha met with reporters that day and explained the background of the restructuring, claiming that "GM is able to stand in a rapidly changing environment of the automotive industry". Intensive restructuring aims to secure investment costs by reducing costs. GM plans to cut $ 6 billion by the end of next year through a restructuring.

Instead of reducing traditional cars, investments in autonomous vehicles and electric vehicles are being reinforced. "We are reducing the number of people in the traditional automotive sector, but we continue to employ software experts, electric cars and autonomous vehicles," Barra said.

Cruise, a subsidiary of GM's autonomous automotive carrier, plans to market mobility services through unmanned autonomous taxis in major US cities next year. It also invests heavily in the development of more than 20 types of electric cars that will begin to be commercialized in 2023.

The decision to reduce GM's core business and switch to new technologies such as unmanned taxi services is considered radical. It is because of the painful memories that President Bara created in the same way as the "game" and to which he reacted preemptively just before the collapse of the global financial crisis 10 years ago.

"With our experience, GM is facing reality and reacting faster than any other company," Bloomberg said. GM had then received $ 49.5 billion in US government badistance.

Merger Keller, an automotive badyst, said: "We can not continue to invest in mobility services that do not guarantee a profit in the near future, while continuing to produce less profitable cars." In a situation where you have to choose, President Barra has chosen the future.

GM is currently facing two difficulties. The first is that American consumers are turning away from GM's general-purpose sedan and the second is the emergence of electric and autonomous vehicles such as Tesla Wei Mo.

President Barra has fully grasped the point of restructuring. It is a calculation aimed at minimizing the side effects badociated with restructuring when the US economy is in full swing. GM said the measure was "not the result of the economic downturn, but a cost saving before the US economy".

Investors applauded GM's move. GM shares rose 4.8% on the New York Stock Exchange. Other builders have raised the course of action. Ford Motor Co. rose 3.01% and Fiat Chrysler 6.76%.

Politics has rebelled. US President Donald Trump said GM should stop production in China and badign a new car to Ohio. The Ohio factory was closed this time. He said that he had met the President himself with this message.

Canadian Prime Minister Sustain Trudeau also expressed his disappointment. He said the government would support workers when the restructuring is implemented. The UAW said that "thousands of workers will be unemployed," he said. "We will fight by all legal measures, including the right to collective bargaining."

Park Hyun-young reporter reporter Shin Siram [email protected]