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General Motors (GM) announced the closure of seven production plants in the world, the elimination of several models and the dismissal of at least 14,500 workers. The company said these measures are "necessary" to secure its future.
GM informed by surprise of the closure of three assembly plants in North America (the Canadian Oshawaand Americans from Detroit-Hamtramck and Lordstown) and two of production of engines and transmissions in the USA (Baltimore and Warren).
Although these five plants are not technically closed, they will cease operations in 2019 and will not be affected by production. GM did not specify in its statement whether any of the 14,500 affected employees of these factories in North America could remain in the company in other production plants.
At the end of next year, the auto giant will cancel the production of two other factories outside of North America, on which it did not give more details. These closures are in addition to Gunsan's already established assembly plant, South Korea.
The closure of the seven plants will cost GM between $ 3,000 and $ 3,800 million, but the company said it would save about $ 6,000 million by the end of 2020. After the publication of the Announcement, GM shares gained nearly 5.5%, or $ 1.95, to $ 37.86 at noon.
The disappearance of these plants will also result in the cessation of production in United States and Canada of many of the most classic models of the company: the sedans of the brand Chevrolet Volt, Cruze and Impala.
What does the company say
The US company explained that it wanted to give priority to "investing in the vehicles of tomorrow in its new generations of electric vehicle architectures" and that she hoped that, by now the beginning of the next decade, "more than 75% of GM's global sales would come from five vehicle architectures."
GM President and Chief Executive Officer Mary Barrasaid, "These shares will increase long-term benefits and cash-generating potential, further enhancing the company's strong liquidity position and financial flexibility."
"The actions we take today continue our transformation to become very agile, resilient and profitable while giving us the opportunity to invest in the future," added Barra.
The reactions of the leaders
The American president, Donald Trump, which seeks to stimulate the industrial sector to revive economic growth, He said that he was "disgusted" at the news.
The Canadian plant that will be closed, located in Oshawa, currently employs about 3,000 workers. The Canadian Prime Minister, Justin Trudeau, He revealed on Twitter that he had spoken to Barra to express his "deep disenchantment" with the closure of the factory. Oshawa, Canada.
"We will do everything in our power to help families affected by this news to recover," he said. Trudeau.
The workers
Meanwhile, GM workers in Oshawa They gave up their work Monday morning and blocked the entrance of the factory to protest the decision of the company.
Hundreds of workers, some crying, were in the Canadian Union, Unifor, whose leaders met with management early in the afternoon.
"We will fight tooth and nail next year," he said at a press conference on Monday. Jerry Dias, President of Unifor, who represents workers at the Oshawa factory. The union noted that Oshawa This is the only plant North America able to produce both pickup trucks and sedans, thanks to the recent investment of $ 500 million.
"Unifor does not accept the closure of the factory as a definitive thing," said Unifor president Jerry Dias in a statement, adding that he would "fight with energy" to maintain these jobs ".
For its part, the American union United Auto Workers (UAW) He described GM's decision as "cruel" and stressed that this is happening at the same time as the company opens or increases its production in "Mexico and China for sale to US consumers ".
UAW has also encouraged US consumers to refuse cars not manufactured in the United States. (EFE and AFP)
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