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General Motors (GM) has announced plans to close seven plants and reduce its workforce by approximately 15 percent as part of a major restructuring program. This decision will also see the company invest again in the development of autonomous and electric vehicles, Coach reports.
The American giant has had to cope with a fall in sales in recent years, which has led to a major overhaul. Part of the restructuring includes the sale of Vauxhall and Opel to the PSA group. GM recently entrusted its Vietnamese operations to Vingroup JSC, which is now the exclusive distributor of Chevrolet cars in Vietnam.
In North America, GM sales were hit hard by declining demand for sedan cars, reflecting Ford's drive to accelerate the development of SUVs and light trucks, while protecting several models of sedans. According to reports, the Chevrolet Cruze, Impala, Cadillac CT6, Buick LaCrosse and Chevrolet Volt Hybrid will all be put to death.
Then, GM will close five plants in North America by the end of 2019. The assembly facilities in Detroit, Ohio and Ontario, Canada, as well as transmission plants in Michigan and Maryland, will be destroyed. Two unnamed factories outside North America will also be shut down following the closure of its plant in Korea following the company's exit earlier this year.
In addition, GM will reduce its workforce by 15%, which corresponds to about 18,000 jobs. The company will also reduce its management workforce by 25%, which could reduce costs by 3.5 billion pounds (18.8 billion RMB).
Subsequently, GM will focus more on new vehicle platforms and future investments will focus on the development of its next-generation battery electric vehicles. The company has already announced plans to develop a 400 kW Extreme Fast Charger system, offering an electric range of 290 km per 10-minute charge. What do you think of that, guys? Discuss below.
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