General Motors to close 7 factories and cut 14,700 jobs | Economy | Business

General Motors (GM) announced today the closure of seven factories in the world under a restructuring plan. The automaker said in a statement that it would close two assembly plants in United States and one in Canadaas well as two other unidentified people in other countries.

The five North American plants affected by the announcement (Oshawa, Detroit-Hamtramck, Lordstown, the assembly of three vehicles, and Baltimore and Warren, which produce engines and transmissions) employ about 14,700 people.

According to the PA, the reduction includes 8,100 administrative staff, some of whom will accept voluntary retirement compensation while others will be fired. Most of the factories involved are manufacturing cars that will not be sold in the US starting next year. They could close or make other vehicles. This will be part of negotiations with the UAW Automobile Union next year.

The company did not say in its release the number of workers who will lose their jobs, but pointed out that "measures are being taken to reduce" the workforce by 15%, a percentage that includes "25% fewer executives to streamline decision-making. "

The company said these measures were part of a process of "transforming for the future" and "reorganizing" its global workforce to "align its manufacturing capabilities".

According to GM, the closures will save about $ 6,000 million. The company added that it would also close two engine production plants in the United States.

In addition to these factories, GM said that by the end of 2019, production will cease in two others located outside of North America, without providing more details, although it will do so soon .

These seven closures are being added to the already announced Gunsan assembly plant in South Korea.

"The actions we take today continue our transformation to become very agile, resilient and profitable, while leaving us the opportunity to invest in the future," said Mary Barra, President and Chief Executive Officer. from GM management.

"We are aware of the need to stay abreast of changing market conditions and consumer preferences so that our company is able to succeed in the long term," added Barra. (With the information of EFE and AP)